BENGALURU (Reuters) – Indian towel-to-paper maker Trident Ltd reported a 28% drop in its fourth-quarter profit on Wednesday, as stubborn inflation hit demand for its products.
Consolidated net profit for the quarter ended March 31, declined to 1.30 billion rupees ($15.73 million) from 1.81 billion rupees a year earlier.
Consolidated net profit after tax for the company, which makes bedsheets, towels, yarn and stationery paper, fell for the fourth straight quarter.
Sluggish domestic sales for Trident continue from the last quarter, when India’s textile industry faced cuts in customer spending on inflationary pressures, and saw a decline in exports for five straight months.
The Ludhiana, Punjab-based company’s consolidated revenue from operations fell about 16% to 15.73 billion rupees, as higher retail inflation in the quarter drove customers to tighten discretionary spending, hitting demand.
Revenue from its yarn segment sank 34%, while the towel and bedsheets businesses posted approximate declines of 3% and 4%, respectively.
However, the company’s paper and chemicals arm rose 22%.
Shares of Trident closed 0.29% higher ahead of results on Wednesday.
($1 = 82.65 Indian rupees)
(Reporting by Hritam Mukherjee in Bengaluru; Editing by Shilpi Majumdar and Rashmi Aich)