Trident Ltd Q2 profits up 65% – Back to pre-COVID levels

On a yoy basis, the profits and the sales numbers of Trident were still quite muted. The sales were down -12.44% on a yoy basis while the operating profits were down -15.60%. Even the net profits were down almost a quarter in the yoy comparison. But, at least, numbers are back to pre-COVID levels, or close to it.

Oct 15, 2020 03:10 IST India Infoline News Service

Trident net profits of Rs.106 crore for the Sep-20 quarter, nearly 10 times the profit for the sequential June quarter. On a sequential basis, the business appeared to get back to pre-COVID levels as the operating profit saw 379% increase while the net profit was up more than 10 times with gains of 945%.
However, on a yoy basis, the profits and the sales numbers of Trident were still quite muted. The sales were down -12.44% on a yoy basis while the operating profits were down -15.60%. Even the net profits were down almost a quarter in the yoy comparison.

Here are the financial highlights

Particulars Sep-20 Quarter Growth (YOY) Growth (QOQ)
Total Revenues Rs1174cr -12.44% +65.69%
Operating Profit Rs147cr -15.60% +379.31%
Net Profits Rs106cr -24.40% +945.40%
Key Ratios Sep-20 Quarter Sep-19 Quarter Jun-20 Quarter
Diluted EPS Rs0.21 Rs2.81 Rs0.02
Operating Margins 12.53% 13.00% 4.33%
Net Profit Margin 9.00% 10.43% 1.43%


Key takeaways from the Sep-20 quarter results
  • For the Sep-20 quarter, Trident reported cash flow from operations of Rs.354 crore compared to Rs.569 crore in the year ago period.
  • The company currently enjoys an interest coverage ratio of 10 times and a debt service coverage ratio of 1.41 times.
  • The huge net worth of Trident at Rs.3144 crore could be a big roadblock for the company to generate ROE and ROCE, putting pressure on valuations.
  • The last quarter ended Jun-20 had been badly disrupted by the Coronavirus pandemic but that has been largely addressed as business is almost back to pre-COVID levels..

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