Trident Texofab Limited announced its unaudited financial results for the quarter ended 30th September, 2019.
- Revenue from operations increase by 26.56% at Rs. 4865.79 lakhs in H1FY20 as against Rs. 3844.67 lakhs in H1FY19
- EBITDA (excluding Other Income) increased by 81.00% in H1FY20 at Rs. 284.59 lakhs as against Rs. 157.23 lakhs in H1FY19
- PAT declined by 46.00% in H1FY20 at Rs. 27.63 Lakhs as against 51.17 lakhs in H1FY19.
The manufacturing expansion plan by the company wherein the Waterjet unit was fully operational by the end of June 2019 which enables the company to strengthen its foothold across the textile sector which would enable us to increase our margin going forward
Value-added operations like embroidery and digital printing has given an edge to the company over other peer to provide one stock solution to our clientele commenced in September 2018.
- The company has built a net block of 999.23 Lakhs by H1FY20 as compared to 319.16 Lakhs in H1FY19.
- This additional capital expenditure is completely available for operations since the beginning of July, 2019. The company has a work force of 100+ to systematically run its operations.
Commenting on the performance, Mr. Hardik Desai, Chairman and Managing Director, said, "We are pleased to deliver a strong performance in the first half of the fiscal year 2020 with strong growth of 26.5% in Revenues and 81% in EBITDA. The Profit after tax declined by 46%. However, this was on account of one-time loss incurred on the sale of shares. The company has delivered a robust performance despite of the slowdown in the domestic economy. We have successfully leveraged on our new manufacturing facility and have been capitalizing on the upcoming opportunities.
The company has done exceptionally well in term of revenue from operations i.e. a growth of 26.55% in H1FY20 as compared to H1FY19. This was despite of a subdued performance in Q2 FY19, as usually the 2nd quarter is the lowest in terms of business volumes, as the lull period of all the product segment coincides in the second quarter of the financial year.
The manufacturing segment operational since June end has been the key enabler for the improving performance of the company in this financial year. Hence the profitability from the manufacturing segment optically seems to be subdued. The value-added operations immensely contributed to the overall performance which enabled the increase EBITDA margin which stood at 5.8% in H1FY20 as against 4% in H1FY19.
We continue to foresee the business operations going on track, wherein the new manufacturing segment and the value added services contributing equally to the margin of the company.
We remain confident of maintaining a strong growth momentum by adding incremental capacities, tapping new customers across geographies as well as increasing the share of value-added products.