Trident Q1 profit slumps as cotton prices soar

Indian textile firm Trident reported a 21 per cent decline in its first-quarter profit as soaring cotton prices eroded margins. The company's consolidated net profit fell to Rs 737.3 million ($8.8 million) from Rs 934 million a year earlier.

While Trident's revenue from operations climbed 17 per cent to Rs 17.43 billion, the cost of raw materials surged nearly 18 per cent, offsetting the gains. This led to a near 20 per cent increase in total expenses, squeezing profitability.

The company's core yarn business, which accounts for the majority of its revenue, witnessed a strong 49 per cent growth. Trident, like many other textile manufacturers, has been grappling with elevated cotton costs for over a year, impacting its bottom line. The company will need to find ways to mitigate the impact of rising raw material prices to improve profitability in the coming quarters.