Trident : Unaudited Financial Results for the Quarter ended on June 30, 2021

Trident Limited

STATEMENT OF UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2021

(INR In Million)

Standalone

Consolidated

Sr.	Particulars	June	March	June	March	June
No		30, 2021	31, 2021	30, 2020	31, 2021	30, 2021
		3 Months	3 Months	3 Months	12 Months	3 Months
		Unaudited	Audited (Refer	Unaudited	Audited	Unaudited
		Note 11)
	Revenue from operations
1 Revenue from operations (Refer Note 3)	14,770.1	13,499.9	7,079.3	45,192.9	14,823.8
2	Other income	28.5	26.3	54.3	160.2	28.7
3	Total Income (1+2)	14,798.6	13,526.2	7,133.6	45,353.1	14,852.5
4	Expenses
	a) Cost of raw materials consumed	6,662.3	5,884.1	2,990.0	20,020.4	6,662.3
	b) Purchase of stock-in-trade	57.4	78.4	-	280.3	76.2
	c) Changes in inventories of finished goods, process waste,	(736.0)	232.4	177.1	(47.9)	(770.1)
	work-in-progress and stock in trade
	d) Employee benefits expenses	1,744.6	1,682.3	985.4	5,775.4	1,755.4
	e) Finance costs	250.0	233.9	231.0	720.0	250.2
	f) Depreciation and amortisation expense	874.1	879.9	824.1	3,364.6	874.6
	g) Forex (gain)/loss (Including MTM)	(62.0)	(84.6)	48.5	(53.6)	(62.0)
	h) Other expenses	3,307.8	3,351.7	1,745.5	11,108.6	3,319.9
`		12,098.2	12,258.1	7,001.6	41,167.7	12,106.5
	2,700.4	1,268.1	132.0	4,185.4	2,746.0
6 Exceptional (income)/expense (Refer Note 5)	-	304.3	-	(266.1)	-
7	Profit before share of profit of associates and tax (5-6)	2,700.4	963.8	132.0	4,451.5	2,746.0
8 Share of Profit of associates	-	-	-	-	-
9	Net Profit before taxes (7+8)	2,700.4	963.8	132.0	4,451.5	2,746.0
10	Tax expenses
	-Current tax	742.2	296.2	45.1	1,304.1	755.6
	-Deferred tax (credit)	(76.8)	(48.6)	(14.1)	(269.9)	(77.7)
	-Current tax adjustments related to earlier years	-	(1.4)	-	(1.4)	-
	-Deferred tax adjustments related to earlier years	-	(38.7)	-	(38.7)	-
11 Net profit after tax (9-10)	2,035.0	756.3	101.0	3,457.4	2,068.1
12 Other Comprehensive Income/(expense) net of taxes
	- Items that will not be reclassified to profit or loss
	- Remeasurement gain/(loss) of the defined benefit plan	-	3.9	-	3.9	-
	- Gain on fair valuation of equity investments through	-	-	257.4	348.0	-
	other comprehensive income
	- Income tax related to items that will not be reclassified to	-	(1.0)	(29.4)	(40.8)	-
	profit or loss
	- Items that will be reclassified to profit or loss
	- Net movement in effective portion of cash flow hedge	(103.6)	(3.1)	242.6	640.3	(103.6)
	reserve
	- Exchange differences in translating the financial	-	-	-	-	0.2
	statements of a foreign operation
	- Income tax related to items that may be reclassified to	26.1	0.8	(61.1)	(161.1)	26.1
	profit or loss
13 Total Comprehensive income (11+12)	1,957.5	756.9	510.5	4,247.7	1,990.8
14 Paid-up equity share capital (Face value of INR 1/- each)*
5,096.0	5,096.0	5,096.0	5,096.0	5,096.0
15 Other equity as per balance sheet				28,069.5
16	Earnings per share (EPS) face value (of INR 1/- each)
(not annualised) (Refer note 7)
	- Basic (INR)	0.41	0.15	0.02	0.68	0.41
	- Diluted (INR)	0.41	0.15	0.02	0.68	0.41
See accompanying note to the Financial results

* Reduced by effective number of own shares at par value held through an associate company for consolidated financial results for quarter ended June 30, 2020.

March

31, 2021 3 Months

Audited (Refer

Note 11)

13,449.5

22.0

13,471.5

5,884.1

107.6

143.7

1,693.2

234.6

881.2

(84.6)

3,333.4

12,193.2

1,278.3

304.3

974.0

-

974.0

300.6

(51.0)

(1.4)

(38.7)

764.5

3.9

-

(1.0)

(3.1)

0.1

0.8

765.2

5,096.0

0.15

0.15

June	March
30, 2020	31, 2021
3 Months	12 Months
Unaudited	Audited
7,085.4	45,306.2

55.0 160.8

7,140.4 45,467.0

2,990.0 20,018.0

0.7 325.8

175.5 (149.6)

993.6 5,815.9

231.0 721.1

1. 3,368.5

1. (53.4)

1,745.3 11,123.7

7,009.5 41,170.0

1. 4,297.0

• 318.5

1. 3,978.5

1. 5.9

1. 3,984.4

1. 1,253.2

(14.1) (272.7)

• (1.4)
• (38.7)

101.1 3,043.9

• 3.9

257.4 348.0

(29.4)(40.8)

242.6 640.3

(0.1)0.7

(61.1) (161.1)

510.5 3,834.9

4,979.4 5,096.0

28,187.2

0.020.61

0.020.61

Trident Limited

SEGMENT WISE REVENUE, RESULTS, SEGMENT ASSETS AND SEGMENT LIABILITIES

(INR In Million)

Sr. Particulars	June	March	June	March	June	March
No.	30, 2021	31, 2021	30, 2020	31, 2021	30, 2021	31, 2021
	3 Months	3 Months	3 Months	12 Months	3 Months	3 Months
	Unaudited	Audited (Refer	Unaudited	Audited	Unaudited	Audited (Refer
	Note 11)	Note 11)

1 Segment Revenue

	a) Textiles (Refer Note 3)	12,821.1	11,318.6	5,856.9	38,160.9	12,874.8	11,268.2
	b) Paper & chemicals	1,950.1	2,184.3	1,223.1	7,040.7	1,950.1	2,184.3
	Total	14,771.3	13,502.9	7,080.0	45,201.6	14,825.0	13,452.5
	Less: Inter segment revenue	1.2	3.0	0.7	8.7	1.2	3.0
	Revenue from operations	14,770.1	13,499.9	7,079.3	45,192.9	14,823.8	13,449.5
2			-	(0)	(0)	(0)	-
Segment results		(0)
	Profit before tax, finance costs and other unallocable
	expenditure net off unallocable income from each
	segment
	a) Textiles		2,659.8	1,199.1	131.3	3,924.6	2,705.4	1,209.8
	b) Paper & chemicals		592.8	607.6	336.8	1,823.0	592.8	607.6
	Total		3,252.6	1,806.9	468.0	5,747.6	3,298.2	1,817.5
	Less:
	a) Finance costs		250.0	233.9	231.0	720.0	250.2	234.6
	b) Other un-allocable expenditure net off un-allocable		302.2	304.9	105.0	842.2	302.0	304.6
	income
	c) Exceptional (income)/expense (Refer Note 5)		-	304.3	-	(266.1)	-	304.3
	Profit before tax	2,700.4	963.8	132.0	4,451.5	2,746.0	974.0
				0.0	0.0	-	0.0	0.0
			-
3	Segment Assets
	a) Textiles		47,705.5	48,176.8	40,670.0	48,176.8	47,964.9	48,376.7
	b) Paper & chemicals		5,555.3	5,377.7	5,155.2	5,377.7	5,555.3	5,377.7
	c) Unallocated		6,178.2	3,987.1	6,915.3	3,987.1	6,153.2	3,962.1
	Total Assets	59,439.0	57,541.6	52,740.4	57,541.6	59,673.4	57,716.5
4
Segment Liabilities *
	a) Textiles		4,409.4	4,123.0	2,807.5	4,123.0	4,482.8	4,176.8
	b) Paper & chemicals		933.7	916.4	974.1	916.4	933.7	916.4
	c) Unallocated		4,527.9	3,927.2	4,130.5	3,927.2	4,537.9	3,930.5
	Total Liabilities		9,871.0	8,966.6	7,912.1	8,966.6	9,954.4	9,023.7
* Excluding borrowings and Interest accrued but not due on borrowings				0.0

June	March
30, 2020	31, 2021
3 Months	12 Months
Unaudited	Audited
5,863.0	38,274.2
1,223.1	7,040.7
7,086.1	45,314.9
0.7	8.7
7,085.4	45,306.2

1. (0)

129.5 4,036.8

1. 1,823.0

1. 5,859.8

1. 721.1

104.4841.7

• 318.5

1. 3,978.5

1. 0.0

40,761.4 48,376.7

5,155.2 5,377.7

7,402.5 3,962.1

53,319.0 57,716.5

2,839.0 4,176.8

974.1916.4

4,132.4 3,930.5

7,945.5	9,023.7
	0.2

Notes

1. These standalone and consolidated financial results have been prepared in accordance with the Indian Accounting Standards ("Ind AS") as prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder.
2. The above standalone and consolidated financial results have been reviewed by the Audit Committee and approved by the Board of Directors in their respective meetings held on August 12, 2021 and have been reviewed by the Statutory Auditors of the Company.
3. Pursuant to approval granted by Union Cabinet on July 14, 2021, for continuation of Rebate of State and Central taxes and Levies (RoSCTL) with the same rates as notified by Ministry of Textiles vide Notification dated March 08, 2019 on exports of Apparel/Garments and Made-ups, the Company has accrued the export benefits of RoSCTL of Rs 1,190.5 million on the eligible export sales for the period from January 1, 2021 to June 30, 2021, out of which Rs 579.3 million pertains to the eligible export sales for the period from January 1, 2021 to March 31, 2021.
   The other Textiles products which are not covered under the RoSCTL shall be eligible to avail the benefits under Remission of Duties and Taxes on Exported Products (RoDTEP) scheme with effect from January 01, 2021. Considering that the rates of RoDTEP are yet to be notified, the Company has not accrued income relating to benefits of RoDTEP scheme for the period from January 1, 2021 to June 30, 2021.
4. On April 05, 2021, a major fire broke out in the Cotton warehouse located in the manufacturing facilities at Budhni, Madhya Pradesh, however the fire has not caused any disturbance in the day to day operations of the said facilities. The fire has resulted in major damage of stocks of cotton lying in the cotton warehouse and its building. The Company has during the current quarter, based on estimation, accounted for loss of inventory and others of Rs 65.5 million due to fire which is included in other expenses in the results for the quarter ended June 30, 2021. There has been no loss of life due to fire.
5. Exceptional Items in the previous year and quarter ended March 31, 2021 included the following:
6. 1. Gain/(loss) on sale of entire stake in equity shares of Lotus Hometextiles Limited (Associate) for Rs 487.4 million (net of tax of Rs 83.0 million) and (Rs 14.3 million) in standalone and consolidated results respectively for the year ended March 31, 2021.
   2. Reversal of excess interest subsidies, provision for interest on excess interest and capital subsidies and depreciation charge on excess capital subsidies pertaining to earlier years based on final report of the Joint Inspection Team of Ministry of Textiles, appointed by Technical Advisory-cum Monitoring Committee (TAMC) on issues related to Amended technology Upgradation Fund scheme (A-TUFS) and previous versions of Technology upgradation fund scheme of Rs 304.3 million in the standalone and consolidated results of the quarter and year ended March 31, 2021.

6. The Code on Social Security, 2020 ('Code') relating to employee benefits during employment and post-employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified. The Company and its Indian subsidiary will assess the impact of the Code when it comes into effect and will record any related impact in the period when the Code becomes effective.

7. During the financial year 2020 - 2021, the Board of Directors and the Shareholders of the Company had approved a Scheme called as "Trident Limited Employee Stock Purchase Scheme - 2020" ("Scheme") in their meeting held on May 16, 2020 and July 9, 2020 respectively. This scheme is effective from July 9, 2020. Pursuant to the Scheme, the Company had, constituted Trident Limited Employees Welfare Trust ('Trust') to acquire, hold and allocate/transfer equity shares of the Company to eligible employees from time to time on the terms and conditions specified under the Scheme. The said trust had, during the previous year, purchased, Company's equity shares aggregated to 100,000,000 equity shares from the secondary open market. However, subsequent to quarter ended Jun 30, 2021, on July 31, 2021 the Company has offered 1,21,02,500 equity shares to all the permanent and active employees (across all cadres) of the Company and its

subsidiary companies at an exercise price of Rs 7.50 per share being the cost of acquisition from the secondary market by the Trust. The financial results of the Trust have been included in the standalone and consolidated financial results of the Company in accordance with the requirements of Ind AS and cost of such treasury shares has been presented as a deduction in Other Equity. Such number of equity shares have been reduced while computing basic and diluted earnings per share for the quarter ended June 30, 2021 and quarter and year ended March 31, 2021.

8. During the financial year 2020 - 2021, the Company had issued 1,250 Senior, Secured, Rated, Listed, Redeemable, Non- Convertible Debentures (NCDs) of the face value of INR 10,00,000/- each aggregating to Rs 1,250 million, at par on Private Placement basis at the rate of 6.83% per annum, payable semi-annually from the date of allotment i.e. November 3, 2020. These NCDs are redeemable at par in four equal instalments at the end of 15th, 27th, 36th and 48th months from the date of allotment. India Ratings and Research (Ind-Ra) has assigned a rating of 'IND AA-' with a Positive Outlook to the said NCDs of the Company, which has been upgraded to IND AA/Stable.

1. On May 27, 2021, first ranking pari-passu charge by way of hypothecation (shared between the Debentures Trustee and Existing Lenders) on the movable fixed assets and second ranking pari-passu charge by way of hypothecation (as shared between the Debentures Trustee and the Existing Lenders) on the hypothecated Assets as defined in trust deed (excluding the Movable Fixed Assets) of the Company has been created. Further, these NCDs are to be secured by way of first ranking pari-passu charge by way of mortgage (to be shared between the Debentures Trustee and Existing Lenders) on the mortgaged properties as defined in trust deed.

2. The Company's/Group's operations, revenue and consequently profit during the quarter ended June 30, 2021 and year ended March 31, 2021 were impacted due to Covid-19. Further, Impact of second wave of Covid-19 has reduced significantly in India. The Government is opening up economic and social activities gradually after the second wave. However, there are significant chances of third wave of Covid-19 pandemic in India based on Government authority's estimation. Currently, the state Governments have implemented regional lockdowns based on situation in individual states/regions. The Company/Group has made detailed assessment of its liquidity position and the recoverability of carrying value of its assets comprising property, plant and equipment, intangible assets, right of use assets, investments, inventory and trade receivables. Based on current indicators of future economic conditions, the Company/Group expects to recover the carrying amount of these assets. The impact of the pandemic in the subsequent period is highly dependent on the situations as they evolve and hence may be different from that estimated as at the date of approval of these standalone and consolidated financial results.
3. Relevant Information pursuant to the requirements of SEBI circular no SEBI/HO/DDHS/DDIJS/CIR/P/2019/115 dated October 22, 2019, in respect of Commercial papers are as follows:

Sr. No.	Particulars	As at Jun 30, 2021	As at March 31, 2021
a)	Debt - equity ratio	0.51	0.59
b)	Interest service coverage ratio	16.13	12.23
c)	Debt service coverage ratio	16.13*	1.91
d)	Net worth	28,135.9	26,100.8
e)	Net profit after tax	2,035.0	3,457.4
f)	Earnings per share	0.41	0.68

*No repayment of long term debts was due during the current quarter.

Formulae for computation of ratios are as follows:

1. Debt - equity ratio = Total Debt (excluding lease liabilities)/ Total Equity (excluding PPE fair valuation reserve and Effective portion of cash flow hedge).
2. Interest service coverage ratio = (Profit before tax and exceptional item + Interest expense + Depreciation and amortisation expense)/ Interest expense).
3. Debt service coverage ratio = (Profit before tax and exceptional item + Interest expense + Depreciation and amortisation expense)/ (Long term debt (excluding lease liabilities) repaid during the quarter/previous year + Interest expense).
   Prepayments of Long term debts in the previous year have not been considered for computation of Debt service coverage ratio.

Due Date and Actual Date of Repayment of Principal

The Company has repaid Commercial Papers on due date. The details of Commercial Papers repaid during the quarter ended June 30, 2021 are as follows:

			Actual Date of	Credit rating
ISIN	INR In Million	Due Date of Repayment	Repayment
INE064C14082	500.0	June 28, 2021	June 28, 2021	CRISIL A1+

There are no commercial papers outstanding as on June 30, 2021 and March 31, 2021

11. The figures of the last quarter of previous year are balancing figures between audited figures in respect of the full financial year and the published figures nine months period ended for previous year.

	By Order of the Board of Directors
	For Trident Limited
	(Rajiv Dewan)
	Chairman
Date : August 12, 2021	DIN 00007988