Trident’s Q3 profit drops 27%, yarn sales lead textile decline amid inflation

Trident Group reported a 27 per cent drop in third-quarter profit, with yarn sales contributing significantly to the decline as inflation continues to suppress demand for textiles. The company, which supplies home textiles to major global retailers like Walmart, Target, IKEA, and JC Penney, posted a consolidated net profit of Rs 797 million ($9.24 million) for the three months ending December 31, down from the previous year.

Yarn sales, which account for 41 per cent of total revenue, fell by 5 per cent, contributing to a broader 9 per cent revenue decline, totalling 16.67 billion rupees. This drop in yarn sales was mirrored across other segments, with towels, bedsheets, and paper and chemicals also reporting declines of 10 per cent, 13 per cent, and 17 per cent, respectively.

Despite the festive season typically boosting consumer spending, inflationary pressures continue to dampen demand. India's retail inflation hit 6.21 per cent in October, with subsequent months showing a slight slowdown, yet remaining above the central bank’s target.

While expenses fell 7.2 per cent to Rs 15.79 billion, due to lower raw material costs, it wasn't enough to offset the revenue loss, especially in the yarn segment, which has been a key contributor to Trident’s performance.