Expect 15-20% growth for the next 2-3 years: Trident Ltd

Textile company Trident Ltd reported good set of first quarter earnings where it clocked its highest quarterly revenue till date.Net profit increased 26 percent to Rs 78.45 crore year on year (YoY) and EBITDA rose 24 percent to Rs 247 crore (YoY).In an interview with CNBC-TV18, Pawan Jain, President of Trident said that the home textile segment is on the up move and contributes to around 80 percent to the total revenue.He expects a revenue growth of 15-20 percent for the next 2-3 years.Below is the verbatim transcript of Pawan Jain’s interview to Anuj Singhal and Sonia Shenoy on CNBC-TV18.Anuj: Let us start with individual segments. Textile did remarkably well for you both in terms of revenue and earnings before interest, taxes, depreciation and amortisation (EBITDA). What kind of numbers can we expect going forward?A: In this particular quarter the revenue is up by 31 percent and the textile is about 40 percent up and going forward we expect that on yearly basis for the next 2-3 years we expect a revenue growth of 15-20 percent.Sonia: How is the demand situation panning out currently?A: Demand is good in -- more particularly -- the home textile space. So, going forward also in this quarter also the home textile the volumes are around more than 40 percent grown as compared to corresponding quarter. So, going forward also we have seen more growth in the home textile segment.Sonia: In the textile segment as a whole your margins have been quite steady at around 19 percent. Do you think you can better these margins for the rest of the year?A: We are giving a guidance -- on overall company basis it is 18-20 percent which is sustainable in the next two years.Anuj: This quarter you did 32 percent revenue growth, but for the full year you say 15-20 percent.A: Yes, 15-20 percent.Anuj: So, Q2-Q4 do you think it is because of base effect or is there anything else that would lead to this growth slowing down?A: One is the base impact and the other is the yarn and paper business more or less it will be stable because there is no volume increase expected in next quarters and for home textile we expect a growth in terms of our incremental revenue in bed linen business and more utilisation in towel business. So, going forward overall basis it is a 15-20 percent on the company as a whole.Sonia: Any expansion plans that you have in either of your businesses -- either textile or paper and chemicals?A: Nothing is on the table right now. We are into capital expenditure (capex) mode for the last 2-3 years and now it is more of a consolation and we are more focussing towards ramping of our order book and going forward it is more working on improving our utilisation level in home textile space.