Trident Limited has informed the Exchange regarding Investor Presentation
TRIDENT/CS/2019
August 3, 2019
The Manager
Listing Department
The Manager
Listing Department
National Stock Exchange of India Limited
BSE Limited
Exchange Plaza, Plot No. C/1, G Block
PhirozeJeejeebhoy Towers
BandraKurla Complex, Bandra (E)
Dalal Street
Mumbai – 400 051
Mumbai – 400 001
Scrip Code:- TRIDENT
Scrip Code:- 521064
Dear Sir/ Madam,
Sub: Investors’ Presentation
In terms of Regulation 30 and other applicable provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find attached herewith copy of Investors’ Presentation with respect to the performance of the Company for the quarter ended June 30, 2019, for analysts and institutional investors.
We request you to kindly place the same on the website of stock exchange(s), for the information of shareholders.
The same is also available on the website of the Company i.e. www.tridentindia.com.
Thanking you
Yours faithfully
For Trident Limited
(Ramandeep Kaur) Company Secretary ICSI Membership No.: F9160
Encl: As above
Trident Limited Trident Limited
Q1 FY20 Earnings Presentation Q1 FY20 Earnings Presentation
Safe Harbour
This presentation has been prepared by Trident Limited (the “Company”) for general information purposes only, without regard to any specific objectives, suitability, financial situations and needs of any particular person and does not constitute any recommendation or form part of any offer or invitation, directly or indirectly, in any manner, or inducement to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of the Company, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or commitment therefor. This presentation does not solicit any action based on the material contained herein. Nothing in this presentation is intended by the Company to be construed as legal, accounting or tax advice.
This presentation has been prepared by the Company based upon information available in the public domain. This presentation has not been approved and will not or may not be reviewed or approved by any statutory or regulatory authority in India or by any Stock Exchange in India. This presentation may include statements which may constitute forward-looking statements. The actual results could differ materially from those projected in any such forward-looking statements because of various factors. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events, or otherwise.
This presentation contains certain forward-looking statements relating to the business, financial performance, strategy and results of the Company and/ or the industry in which it operates. Forward-looking statements are statements concerning future circumstances and results, and any other statements that are not historical facts, sometimes identified by the words including, without limitation "believes", "expects", "predicts", "intends", "projects", "plans", "estimates", "aims", "foresees", "anticipates", "targets", and similar expressions. The forward-looking statements, including those cited from third party sources, contained in this presentation are based on numerous assumptions and are uncertain and subject to risks. A multitude of factors including, but not limited to, changes in demand, competition and technology, can cause actual events, performance or results to differ significantly from any anticipated development. Neither the Company nor its affiliates or advisors or representatives nor any of its or their parent or subsidiary undertakings or any such person's officers or employees guarantees that the assumptions underlying such forward-looking statements are free from errors nor does either accept any responsibility for the future accuracy of the forward-looking statements contained in this presentation or the actual occurrence of the forecasted developments. Forward-looking statements speak only as of the date of this presentation and are not guarantees of future performance. As a result, the Company expressly disclaims any obligation or undertaking to release any update or revisions to any forward-looking statements in this presentation as a result of any change in expectations or any change in events, conditions, assumptions or circumstances on which these forward looking statements are based. Given these uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements.
The information contained in these materials has not been independently verified. None of the Company, its directors, promoter or affiliates, nor any of its or their respective employees, advisers or representatives or any other person accepts any responsibility or liability whatsoever, whether arising in tort, contract or otherwise, for any errors, omissions or inaccuracies in such information or opinions or for any loss, cost or damage suffered or incurred howsoever arising, directly or indirectly, from any use of this presentation or its contents or otherwise in connection with this presentation, and makes no representation or warranty, express or implied, for the contents of this presentation including its accuracy, fairness, completeness or verification or for any other statement made or purported to be made by any of them, or on behalf of them, and nothing in this presentation or at this presentation shall be relied upon as a promise or representation in this respect, whether as to the past or the future. Past performance is not a guide for future performance. The information contained in this presentation is current, and if not stated otherwise, made as of the date of this presentation. The Company undertakes no obligation to update or revise any information in this presentation as a result of new information, future events or otherwise. Any person/ party intending to provide finance/ invest in the shares/ businesses of the Company shall do so after seeking their own professional advice and after carrying out their own due diligence procedure to ensure that they are making an informed decision.
This presentation is not a prospectus, a statement in lieu of a prospectus, an offering circular, an advertisement or an offer document under the Companies Act, 2013, as amended, the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended, or any other applicable law in India.
This presentation is strictly confidential and may not be copied or disseminated, in whole or in part, and in any manner or for any purpose. No person is authorized to give any information or to make any representation not contained in or inconsistent with this presentation and if given or made, such information or representation must not be relied upon as having been authorized by any person. Failure to comply with this restriction may constitute a violation of the applicable securities laws. Neither this document nor any part or copy of it may be distributed, directly or indirectly, in the United States. The distribution of this document in certain jurisdictions may be restricted by law and persons in to whose possession this presentation comes should inform themselves about and observe any such restrictions. By reviewing this presentation, you agree to be bound by the foregoing limitations. You further represent and agree that you are located outside the United States and you are permitted under the laws of your jurisdiction to receive this presentation.
This presentation is not an offer to sell or a solicitation of any offer to buy the securities of the Company in the United States or in any other jurisdiction where such offer or sale would be unlawful. Securities may not be offered, sold, resold, pledged, delivered, distributed or transferred, directly or indirectly, in to or within the United States absent registration under the Securities Act, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with any applicable securities laws of any state or other jurisdiction of the United States. The Company’s securities have not been and will not be registered under the United States Securities Act of 1933, as amended.
Q1 FY20 Earnings Presentation - Trident Ltd.
2
Overview
Textiles
Paper
Largest Player in terms of Terry Towel Capacity & One of the largest players in Home Textile Space in India
Highest Operating Margin among Key Listed Players in India
Revenue Split between segments
Q1 FY20
FY19
FY18
FY17
56%
51%
48%
49%
25%
30%
33%
33%
19%
19%
19%
18%
Bath & Bed Linen
Yarn
Paper
One of the Leading Business Groups with interest in Textiles and Paper
Q1 FY20 Earnings Presentation - Trident Ltd.
3
Global Presence
Corporate Office :
Ludhiana, Punjab
Manufacturing Facilities at:
Marketing Offices (India):
Marketing Offices (Intl.):
Sanghera & Dhaula, Punjab Budni, Madhya Pradesh
Mumbai, Gurgaon Kolkata, Bengaluru
New York, United States Cheshire, United Kingdom
Snapshot
Key Market Statistics BSE Ticker NSE Ticker Bloomberg Code Reuters Market Price (Rs) Market Cap (INR Crore / USD Mn) Number of Outstanding Shares (Crore) Face Value Face Value 52-week High / Low (Rs.)
02-August-2019 521064 Trident TRID:IN TRIE.NS 53.70 2737/ 393 50.96 Rs. 10 per share Rs. 10 per share 75.60 / 52.15
Shareholding Pattern – 30th June, 2019
Category
June, 2019
March, 2019
Promoters
71.06%
70.77%
Institutions
3.23%
2.96%
Public
25.71%
28.61%
Q1 FY20 Earnings Presentation - Trident Ltd.
4
Evolution
S E L I T X E T
R E P A P
) r C R N
I ( e u n e v e R
Inception Set-up 1st Spinning
Unit Facility
Entered Home Textile
with 1st Towel Manufacturing Unit Set up Spinning Unit - II
Augmented Towel with Unit –II set up Spinning with Unit-
III set up
Set-up Towel Unit
Set-up Towel Unit-IV & First
– III;
Added Spinning Units– IV, V & VI
Bed Linen Unit
Added Spinning Units - VII,
VIII, IX & X
Launched Textile Brands
1990 - 95
1996 - 00
2001 - 05
2006 - 10
2011 - 16
2001 - 05 2001 - 05
2006 - 10 2006 - 10
2011 - 16 2011 - 16
Acquired Paper Manufacturing Facility along with Captive Power
Set-up Paper Unit II Set-up Captive Power
Facility
Launched Paper
Brands
3816
1803
4640
5265
FY10
FY15
FY18
FY19
47
FY95
294
FY00
706
FY05
Transformed from a Pure Play Yarn Player to an Integrated Textiles and Paper Manufacturer
Q1 FY20 Earnings Presentation - Trident Ltd.
5
Key Highlights - P&L
Q1FY20
TOTAL INCOME (INR CR)
PBT (INR CR)
13131313
+15%+15%
Q1FY19: 1140
183183 +123% +123%
Q1FY19 : 82
EBIDTA (INR CR) EBIDTA (INR CR)
PAT (INR CR) PAT (INR CR)
304304 +50%+50%
Q1FY19 : 203
123123 +108% +108%
Q1FY19 : 59
Revenue for the quarter stood at INR 1313 crores registering a growth of 15% Y-o-Y as compared to INR 1140 Crores in Q1FY19.
Bath Linen segment registering capacity utilization
of 56% in Q1 FY20
Targeting key retailers in US and focusing on major markets in Europe has helped us in improving the volumes in Home Textiles segment volumes in Home Textiles segment
EBITDA stood
at
INR
304
crores marking improvement of 50% Y-o-Y in Q1FY20 compared to INR 203 crores in Q1FY19. EBITDA Margin stood at 23.15% in Q1FY20
EBIT (INR CR)
EPS (INR)
219219 +100% +100%
2.422.42 +110% +110%
Q1FY19 : 109
Q1FY19 : 1.15
PAT of INR 123 crores with ~9.4% PAT Margin in Q1
FY20.
EPS stood at INR 2.42 in Q1FY20, marking an
improvement of 110% Y-o-Y.
Q1 FY20 Earnings Presentation - Trident Ltd.
6
Key Highlights - B/S
as on June 30, 2019
NET DEBT (INR CR)
LT DEBT (INR CR)
19241924
-420Cr -420Cr
12011201
-93Cr -93Cr
FY19: 2344
FY19 : 1294
NET DEBT/EQUITY NET DEBT/EQUITY
NET DEBT/EBIDTA NET DEBT/EBIDTA
0.60.6
FY19 : 0.8
1.61.6
FY19 : 2.3
REPAYMENT (INR CR)
CASH PROFIT (INR CR)
9393
208208
Q1 FY19: 77
Q1 FY19 : 154
Finance costs for Q1 FY20 stood at INR 35.84 crore
Repayment of Long Term Debt of INR 93 Crore in
Q1 FY20 ; Net Debt reduced by INR 420 Crore
Cash Profit of INR 208 Crore during Q1FY20
Net Debt (INR Cr.)
2714
2621
2344
1924
Mar'17
Mar'18
Mar'19
June'19
Q1 FY20 Earnings Presentation - Trident Ltd.
7
P&L Statement (S)
Particulars
Q1 FY20 Q4 FY19
Shift
Q1 FY19
Shift
FY19
FY18
Shift
Total Income
1,313.1
1,416.5
-7.3%
1140.0
15.2%
5265.3
4640.3
13.5%
EBITDA
EBITDA %
303.9
268.1
13.4%
203.1
49.7%
1023.1
914.0
11.9%
23.1%
18.9%
+420bps
17.8%
+530bps
19.4%
19.7% -30bps
Depreciation Depreciation
84.6 84.6
88.6 88.6
-4.5% -4.5%
94.4 94.4
-10.3% -10.3%
363.9 363.9
404.0 404.0
-9.9%
EBIT
219.3
179.4
22.2%
108.7
101.8%
659.2
510.0
29.2%
Finance Cost
Profit Before Tax
Profit After Tax
EPS (INR)
35.8
183.5
123.2
2.42
32.4
10.8%
147.1
24.8%
92.6
1.82
33.0%
33.0%
27.1
81.6
58.5
1.15
32.5%
112.3
118.2
-5.0%
124.8%
546.9
391.8
39.6%
110.6%
370.9
265.9
39.5%
110.4%
7.28
5.22
39.5%
Cash Profit
207.9
181.2
14.7%
152.9
36.0%
734.8
669.9
9.7%
Q1 FY20 Earnings Presentation - Trident Ltd.
8
Dividend Payout Div. Amt. (INR Per Share)
Total Div%
Year
Type
%age
Dividend Payout Ratio
Q1 FY20
9%
0.9/-
1st Interim
1st Interim
2nd Interim
9%
6%
6%
35%
27%
FY19
30%
3.00/-
3rd Interim
12%
50%
45%
Final Final
1st Interim
FY18
15%
1.50/-
2nd Interim
Final
1st Interim
FY17
15%
1.50/-
2nd Interim
Final
*Dividend Distribution Policy is available at www.tridentindia.com
6% 6%
6%
6%
3%
6%
6%
3%
FY17 FY17
FY18 FY18
FY19 FY19
Q1FY20 Q1FY20
Historical Dividends (%age of Face Value)
30%
15%
15%
9%
FY17
FY18
FY19
Q1FY20
Q1 FY20 Earnings Presentation - Trident Ltd.
9
Management Comment
Commenting on the performance, Mr. Rajinder Gupta, Chairman at Trident Group said:
“The year has started on a strong note with healthy operational and financial
performance during the quarter. Given our overall thrust on efficiencies,
marketing and cost marketing and cost
rationalization, we believe we could sustain the rationalization, we believe we could sustain the
momentum in the coming quarters.
We would continue to focus on improving our utilization rates of home
textiles, generating free cash and through prudent financial management
deliver even better results to our shareholders.”
Q1 FY20 Earnings Presentation - Trident Ltd.
10
Textile - Financials
Sales (INR Crores)
1057
916
EBIT (INR Crores)
145
39
Q1 FY19
Q1 FY20
Q1 FY19
Q1 FY20
Towel (In 000’ tons)
50%
45%
49%
56%
0 9
0 9
0 9
0 9
120
100
80
60
40
20
0
100% 90% 80% 70% 60% 50% 40% 30% 20%
50
40
30
20
10
0
29%
.
2 3 4
Capacity Utilization
Bed Linen (In mn. meters)
63%
44%
46%
.
2 3 4
.
2 3 4
.
2 3 4
200
150
100
50
0
70% 60% 50%
40% 30% 20% 10% 0%
FY17
FY18
FY19 Q1FY20
FY17
FY18
FY19
Q1FY20
Yarn (In 000’ tons)
98%
95%
99%
100%
98%
96%
94%
92%
90%
93%
5 1 1
5 1 1
5 1 1
5 1 1
FY17
FY18
FY19
Q1FY20
Capacity Utilization
Q1 FY20 Earnings Presentation - Trident Ltd.
11
Paper - Financials
Sales (INR Crores)
248
215
EBIT (INR Crores)
77
99
Q1 FY19
Q1 FY20
Q1 FY19
Q1 FY20
Capacity Utilization (Tonnage Basis)
Copier v/s Non-Copier
200
150
100
50
0
89%
89%
89%
89%
5 7 1
5 7 1
5 7 1
5 7 1
90%
85%
80%
75%
70%
FY17
FY18
FY19
Q1FY20
Capacity Utilization
51%
Q1 FY20
49%
Copier
Non-Copier
Q1 FY20 Earnings Presentation - Trident Ltd.
12
Financial Performance
Revenue (INR Cr)
EBIDTA (INR Cr)
1313
1140
350
300
250
200
150
100
50
0
17.8%
3 0 2
EBIDTA 23.1%
4 0 3
EBIDTA %
24.5%
23.5%
22.5%
21.5%
20.5%
19.5%
18.5%
17.5%
16.5%
15.5%
14.5%
13.5%
Q1 FY 19 Q1 FY 19
Q1 FY 20 Q1 FY 20
Q1 FY 19 Q1 FY 19
Q1 FY 20 Q1 FY 20
PAT (INR Cr)
PAT 9.4%
PAT Margin
Interest Coverage Ratio
150.00
100.00
50.00
0.00
5.1%
9 5
10.0%
9.0%
8.0%
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
3 2 1
8.48
7.51
Q1 FY 19
Q1 FY 20
Q1 FY 19
Q1 FY 20
Q1 FY20 Earnings Presentation - Trident Ltd.
13
Financial Performance
Net Debt (INR Cr.)
Net Debt
D/E Ratio
Net Worth (INR Cr)
Net Worth
ROE
1.0
4 1 7 2
1.0
1 2 6 2
0.8
4 4 3 2
0.6
4 2 9 1
1.2
1.0
0.8
0.6
0.4
0.2
0.0
FY17
FY18
FY19
Q1FY20
Capital Employed
Capital Employed
ROCE
11.7%
5 4 9 4
10.6%
0 0 8 4
14.2%
6 7 6 4
19.0%
5 1 6 4
20.0%
18.0%
16.0%
14.0%
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
3000
2500
2000
1500
1000
500
0
5000
4900
4800
4700
4600
4500
4400
4300
18.6%
13.3%
16.6%
20.8%
6 1 8 1
3 0 0 2
1 4 2 2
6 6 3 2
FY17
FY18
FY19
Q1FY20
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
Fixed Assets
Fixed Assets
Assets Turnover
1.1
7 6 4 4
1.1
8 7 0 4
1.4
1.4
8 4 8 3
0 5 7 3
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0.0
2500
2000
1500
1000
500
0
4600
4400
4200
4000
3800
3600
3400
3200
FY17
FY18
FY19
FY19
FY17
FY18
FY19
Q1FY20
*Excludes fair valuation of land as per IND – AS
Q1 FY20 Earnings Presentation - Trident Ltd.
14
Key Ratios
Particulars (INR crore)
Return on Capital Employed*
Return on Equity*
Interest Coverage Interest Coverage
Net Debt to Equity
Net Debt / EBITDA
Q1 FY20
19.0%
20.8%
8.5 8.5
0.6
1.6
FY19
14.2%
16.6%
8.7 8.7
0.8
2.3
FY18
10.6%
13.3%
7.7 7.7
1.0
2.9
Credit Rating:
CRISIL AA-/ CARE AA- (LT Bank Facilities) CRISIL A1+/ CARE A1+ (ST Bank Facilities)
CP Rating:
CRISIL A1+/ IND A1+
Q1 FY20 Earnings Presentation - Trident Ltd.
15
*Excludes fair valuation of land as per IND – AS
For more information about us, please visit www.tridentindia.com
Pawan Jain/ Abhinav Gupta Investor Relations, Trident Limited Investor Relations, Trident Limited Tel: +91 161 5039 999 Fax: +91 161 5039 900 Email: pawanjain@tridentindia.com; abhinavgupta@tridentindia.com
Thank You
Q1 FY20 Earnings Presentation - Trident Ltd.
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