Indian textiles firm Trident reported a nearly 25 per cent drop in its third-quarter profit, hurt by a rise in expenses, even as consumers bought more home linen during the festive season.
Trident, which counts cotton as its principal raw material, reported a 16 per cent increase in overall expenses for the quarter that ended 31 December with raw material prices rising by around 9 per cent. This cut into its earnings, which dropped to 1.09 billion rupees.
Trident’s shares, which supply items to department shops such as Shoppers Stop, D-Mart, and Walmart, ended 2.6 per cent down on the report.
India’s festival season coincided with the third quarter and consumers spent more on household linens like bedsheets. This helped Trident record a 12 per cent increase in revenue to 18.35 billion rupees (USD 220.99 million).
The firm, which also manufactures paper and chemicals, reported that sales from its yarn and bedsheets segments increased by around 25 per cent and 36 per cent, respectively, while revenue from its towels division decreased by 8 per cent.
All three categories accounted for 86 per cent of total revenue.
