IDBI Capital: Trident Q2 Review - Textiles Margin Improves; Order Backlog Strong
A worker working in Warping section making beam in a textile mill. (Photographer: Asad Zaidi/Bloomberg)

IDBI Capital: Trident Q2 Review - Textiles Margin Improves; Order Backlog Strong

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IDBI Capital Report

Trident Ltd. reported weaker than expected Q2 FY21 results. Its sales/Ebitda were 21%/15% lower than our forecasts.

Although its sales fell 12.5% YoY to Rs 12 billion, improvement in textiles segment margin was a key positive.

Textiles Ebit margin improved 141 basis points YoY to 12% and order backlog has improved significantly.

Also, Trident’s net debt fell to Rs 9 billion, compared to Rs 12 billion in March 2020.

We raise our FY21/FY22 sales estimates by 10-12% on rising order backlog.

Also, our FY21-FY22 Ebitda forecasts are higher by 20-25% due to anticipated improvement in margins.

Click on the attachment to read the full report:

IDBI Capital Trident Q2FY21 Result Update.pdf

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