Chairman's Address
Continuing to build momentum
The shifting dynamics in global manufacturing have opened up new avenues of growth for
India, thus compelling us to embrace new strategies to seize the forthcoming
opportunities.
Leveraging on our strategic shift towards becoming a competent manufacturer of textiles
in India, we have witnessed significant progress and commendable results.
Dear Shareholders,
It is my pleasure to share our performance in FY24, a year that has been both
challenging and rewarding for Trident Texofab Limited. This year marks yet another
milestone in our collective journey, a journey defined by resilience, innovation, and the
trust you have placed in us.
The global economic scenario has been anything but stable, with fluctuations impacting
industries worldwide, including textiles. Despite these macroeconomic challenges, Trident
Texofab has not only maintained its footing but also continued to build on its strengths.
The global textile industry has witnessed shifts in demand and supply chains, and
India, as a major player, has had to adapt to these changes. Despite all that, our
country's position in the global textile industry remains robust, and Trident Texofab
continues to build its momentum towards manufacturing.
Strategic shift
One of the key constants of our year has been the continued execution of our 'Shifting
Gears' strategy, which has seen us transition from a primarily trading-focussed model to
becoming a dynamic force in textile manufacturing. This strategic pivot, initiated in
FY18, has redefined our business model, allowing us to maximise our operational
efficiencies and better meet market demands.
In FY24, this shift was particularly evident as our manufacturing operations
contributed a significant 66% of our revenue, a stark contrast to FY18 when trading
accounted for nearly 100% of our sales. This transformation is not merely a shift in
numbers; it is a tribute to our commitment to innovation and sustainable growth. We
continue to be on the lookout for more strategic investments in the manufacturing value
chain within our industry, which will further bolster our manufacturing revenue
contribution.
Years' highlights
Our financial performance in FY24 highlights the resilience of our business model.
Revenue from operations increased to Rs.9,948.34 Lakhs, reflecting consistent demand and
successful market penetration. Although we saw a marginal dip in EBITDA in absolute terms,
our EBITDA margin remained strong at 6.2% in FY24, demonstrating our effective cost
management strategies.
However, the rise in Depreciation & Amortisation and Finance Costs resulted in a
decline in PBT to Rs.85.80 Lakhs and PAT to Rs.107.98 Lakhs. The reduction in net
profitability compared to previous periods was also affected by lower Other Income.
Despite this, our overall profitability has increased significantly over long-term trends.
This steady improvement is a clear indication of our commitment to sustainable growth,
even in the face of external challenges.
The fourth quarter of FY24 was particularly noteworthy, with Revenue from Operations
reaching an all-time high of Rs.3,01712 Lakhs, a 24% YOY increase. This achievement
reinforces the effectiveness of our strategic shift and the strength of our manufacturing
operations, which continue to be the bedrock of our profitability margins.
Looking ahead
Our focus on manufacturing has been supported by substantial investments in
infrastructure and capacity expansion. Over the years, we have built an additional
Netblock of Rs.1,909 Lakhs, bringing our total to Rs.1,913 Lakhs by the end of FY24. As
the Company continues to expand its manufacturing capabilities, the trading vertical is
expected to gradually phase out, allowing Trident to focus more on its core manufacturing
strengths.
Our current manufacturing capacity stands at an impressive ~250 lakh metres annually,
with plans for further expansion to meet growing demand. These investments are not just
about increasing capacity; they are about fortifying our operational efficiency and
ensuring that we remain competitive in the market.
As we move forward, we remain committed to our 'Shifting Gears' strategy, with further
investments in our manufacturing capabilities already being contemplated. We believe that
this focus will continue to drive our growth and improve our profitability margins,
ensuring that Trident Texofab remains a force in the textile industry.
In closing, I want to express my deepest gratitude to our dedicated employees, our
supportive shareholders, and all our stakeholders who have been an integral part of our
journey. Your continued trust and commitment have been the pillars of our success, and I
look forward to our collaboration as we strive to reach new heights together.
Warm regards,
Hardik Jigishkumar Desai
CHAIRMAN.