Trident Ltd — Investor Presentation 2020

Jul 18, 2020

TRIDENT/CS/2020 July 18, 2020

==> picture [462 x 54] intentionally omitted <==

	TRIDENT/CS/2020 July 18, 2020
The Manager Listing Department National Stock Exchange of India Limited Exchange Plaza, Plot No. C/1, G Block BandraKurla Complex, Bandra (E) Mumbai – 400 051	The Manager Listing Department BSE Limited Phiroze Jeejeebhoy Towers Dalal Street Mumbai – 400 001
Scrip Code:- TRIDENT	Scrip Code:- 521064

Dear Sir/ Madam,

Sub: Investors’ Presentation

In terms of Regulation 30 and other applicable provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find attached herewith copy of Investors’ Presentation with respect to the performance of the Company for the Quarter ended June 30, 2020, for analysts and institutional investors.

We request you to kindly place the same on the website of stock exchange(s), for the information of shareholders.

The same is also available on the website of the Company i.e. www.tridentindia.com.

Thanking you Yours faithfully For Trident Limited

==> picture [82 x 42] intentionally omitted <==

==> picture [67 x 63] intentionally omitted <==

(Ramandeep Kaur) Company Secretary ICSI Membership No.: F9160

Encl: As above

==> picture [460 x 34] intentionally omitted <==

==> picture [245 x 312] intentionally omitted <==

==> picture [420 x 151] intentionally omitted <==

Trident Limited Q1 FY21 Earnings Presentation

==> picture [128 x 54] intentionally omitted <==

==> picture [88 x 61] intentionally omitted <==

==> picture [76 x 48] intentionally omitted <==

==> picture [107 x 42] intentionally omitted <==

==> picture [83 x 49] intentionally omitted <==

==> picture [123 x 43] intentionally omitted <==

==> picture [104 x 50] intentionally omitted <==

==> picture [135 x 40] intentionally omitted <==

==> picture [117 x 64] intentionally omitted <==

==> picture [132 x 41] intentionally omitted <==

Safe Harbour

This presentation has been prepared by Trident Limited (the � Company ��for general information purposes only, without regard to any specific objectives, suitability, financial situations and needs of any particular person and does not constitute any recommendation or form part of any offer or invitation, directly or indirectly, in any manner, or inducement to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of the Company, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or commitment therefor. This presentation does not solicit any action based on the material contained herein. Nothing in this presentation is intended by the Company to be construed as legal, accounting or tax advice.

This presentation has been prepared by the Company based upon information available in the public domain. This presentation has not been approved and will not or may not be reviewed or approved by any statutory or regulatory authority in India or by any Stock Exchange in India. This presentation may include statements which may constitute forward-looking statements. The actual results could differ materially from those projected in any such forward-looking statements because of various factors. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events, or otherwise.

This presentation contains certain forward-looking statements relating to the business, financial performance, strategy and results of the Company and/ or the industry in which it operates. Forward-looking statements are statements concerning future circumstances and results, and any other statements that are not historical facts, sometimes identified by the words including, without limitation "believes", "expects", "predicts", "intends", "projects", "plans", "estimates", "aims", "foresees", "anticipates", "targets", and similar expressions. The forward-looking statements, including those cited from third party sources, contained in this presentation are based on numerous assumptions and are uncertain and subject to risks. A multitude of factors including, but not limited to, changes in demand, competition and technology, can cause actual events, performance or results to differ significantly from any anticipated development. Neither the Company nor its affiliates or advisors or representatives nor any of its or their parent or subsidiary undertakings or any such person's officers or employees guarantees that the assumptions underlying such forward-looking statements are free from errors nor does either accept any responsibility for the future accuracy of the forward-looking statements contained in this presentation or the actual occurrence of the forecasted developments. Forward-looking statements speak only as of the date of this presentation and are not guarantees of future performance. As a result, the Company expressly disclaims any obligation or undertaking to release any update or revisions to any forward-looking statements in this presentation as a result of any change in expectations or any change in events, conditions, assumptions or circumstances on which these forward looking statements are based. Given these uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements.

The information contained in these materials has not been independently verified. None of the Company, its directors, promoter or affiliates, nor any of its or their respective employees, advisers or representatives or any other person accepts any responsibility or liability whatsoever, whether arising in tort, contract or otherwise, for any errors, omissions or inaccuracies in such information or opinions or for any loss, cost or damage suffered or incurred howsoever arising, directly or indirectly, from any use of this presentation or its contents or otherwise in connection with this presentation, and makes no representation or warranty, express or implied, for the contents of this presentation including its accuracy, fairness, completeness or verification or for any other statement made or purported to be made by any of them, or on behalf of them, and nothing in this presentation or at this presentation shall be relied upon as a promise or representation in this respect, whether as to the past or the future. Past performance is not a guide for future performance. The information contained in this presentation is current, and if not stated otherwise, made as of the date of this presentation. The Company undertakes no obligation to update or revise any information in this presentation as a result of new information, future events or otherwise. Any person/ party intending to provide finance/ invest in the shares/ businesses of the Company shall do so after seeking their own professional advice and after carrying out their own due diligence procedure to ensure that they are making an informed decision.

This presentation is not a prospectus, a statement in lieu of a prospectus, an offering circular, an advertisement or an offer document under the Companies Act, 2013, as amended, the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended, or any other applicable law in India.

This presentation is strictly confidential and may not be copied or disseminated, in whole or in part, and in any manner or for any purpose. No person is authorized to give any information or to make any representation not contained in or inconsistent with this presentation and if given or made, such information or representation must not be relied upon as having been authorized by any person. Failure to comply with this restriction may constitute a violation of the applicable securities laws. Neither this document nor any part or copy of it may be distributed, directly or indirectly, in the United States. The distribution of this document in certain jurisdictions may be restricted by law and persons in to whose possession this presentation comes should inform themselves about and observe any such restrictions. By reviewing this presentation, you agree to be bound by the foregoing limitations. You further represent and agree that you are located outside the United States and you are permitted under the laws of your jurisdiction to receive this presentation.

This presentation is not an offer to sell or a solicitation of any offer to buy the securities of the Company in the United States or in any other jurisdiction where such offer or sale would be unlawful. Securities may not be offered, sold, resold, pledged, delivered, distributed or transferred, directly or indirectly, in to or within the United States absent registration under the Securities Act, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with any applicable securities laws of any state or other jurisdiction of the United States. The Co�pa�y’s securities have not been and will not be registered under the United States Securities Act of 1933, as amended.

==> picture [84 x 16] intentionally omitted <==

2

Q1 FY21 Earnings Presentation - Trident Ltd.

Overview

Textiles Paper Largest Player in terms of Terry Towel Capacity & One of the largest Highest Operating Margin among players in Home Textile Space in India Key Listed Players in India

==> picture [147 x 101] intentionally omitted <==

==> picture [159 x 101] intentionally omitted <==

==> picture [142 x 101] intentionally omitted <==

==> picture [212 x 101] intentionally omitted <==

Revenue	Revenue	Split between segments	Split between segments
Q1 FY21			65%		17% 18%
FY20			54%		26% 20%
FY19			51%		30% 19%
FY18			48%		33% 19%
			Bath & Bed Linen	Yarn	Paper
			One of the Leading Business Groups with interest in		Textiles and Paper

==> picture [84 x 16] intentionally omitted <==

3

Q1 FY21 Earnings Presentation - Trident Ltd.

Snapshot

Global Presence
Corporate Office :	Ludhiana, Punjab
Manufacturing Facilities at:	Sanghera & Dhaula, Punjab Budni, Madhya Pradesh
Marketing Offices (India):	Mumbai, Gurgaon
	Kolkata, Bengaluru
Marketing Offices (Intl.):	New York, United States
	Cheshire, United Kingdom

	Key Market Statistics	Key Market Statistics	Key Market Statistics		17-July-2020	17-July-2020
	BSE Ticker				521064
	NSE Ticker				Trident
	Bloomberg Code				TRID:IN
	Reuters				TRIE.NS
	Market Price (Rs)				6.98
	Market Cap (INR Crore / USD Mn)				3557/ 474
	Number of Outstanding Shares (Crore)				509.60*
	Face Value				Rs. 1 per share
	52-week High / Low		(Rs.)		8.40/3.05
	Shareholding Pattern – 30th				Jun, 2020
	Category		Jun, 2020		Mar, 2020
	Promoters		71.07%		71.06%
	Public		28.93%		28.94%

==> picture [318 x 188] intentionally omitted <==

*Each equity share having face value of Rs 10 each has been split into 10 equity shares with face value of Rs 1 each. Accordingly previous year figures have been recomputed

==> picture [84 x 16] intentionally omitted <==

4

Q1 FY21 Earnings Presentation - Trident Ltd.

Evolution

==> picture [674 x 360] intentionally omitted <==

----- Start of picture text -----

▪ Inception ▪ Entered Home Textile ▪ Augmented Towel ▪ Set-up Towel Unit ▪ Set-up Towel Unit-IV & First
▪ Set-up 1st Spinning with 1 [st] Towel with Unit –II set up – III; Bed Linen Unit
Unit Facility Manufacturing Unit ▪ Spinning with Unit- ▪ Added Spinning ▪ Added Spinning Units - VII,
▪ Set up Spinning Unit - II III set up Units– IV, V & VI VIII, IX & X
▪ Launched Textile Brands
1990 - 95 1996 - 00 2001 - 05 2006 - 10 2011 - 16
2001 - 05 2006 - 10 2011 - 16
▪ Acquired Paper
Manufacturing ▪ Set-up Paper Unit II
Facility along with ▪ Set-up Captive Power ▪ Launched Paper
Captive Power Facility Brands
5265 4724
3816
1803
706
294
47
FY 95 FY 00 FY 05 FY 10 FY 15 FY 19 FY 20
Transformed from a Pure Play Yarn Player to an Integrated Textiles and Paper Manufacturer
TEXTILES
PAPER
Revenue(INR Cr)
----- End of picture text -----

==> picture [84 x 16] intentionally omitted <==

5

Q1 FY21 Earnings Presentation - Trident Ltd.

Key Highlights - P&L

Q1 FY21

TOTAL INCOME (INR CR) PBT (INR CR) 713 -46% 13

-46% 13 -93% Q1 FY20: 1313 Q1 FY20 : 183

EBIDTA (INR CR) PAT (INR CR) 119 -60% 10 -92%

Q1 FY20 : 301 Q1 FY20 : 123

EBIT (INR CR)

EPS (INR)

36 -83%

0.02 -22

• Overall decline is primarily due to COVID-19 related market volatility during the current quarter. Therefore, results for Quarter 1 of 2020-21 are not comparable to previous corresponding period results

• Exports contributed 74% of the total revenue for the quarter

• Bed Linen segment registered revenue growth of 37% in current quarter Q-o-Q basis inspite of lower volumes and owing to better product mix

• Finance Cost in Q1 FY21 reduced to INR 23.1 Crores, reduction of 29% as compared to INR 32.5 Crores in Q1 FY20 (on account of debt reduction)

• EBITDA Margin stood at 16.6% in Q1 FY21 despite 46% reduction in revenue

FY19 : 216 FY19 : 0.24

==> picture [84 x 16] intentionally omitted <==

6

Q1 FY21 Earnings Presentation - Trident Ltd.

Key Highlights - B/S

as on June 30, 2020

NET DEBT (INR CR) LT DEBT (INR CR) 1245 -329Cr 836 -215Cr FY20: 1614 FY19 : 1051

▪ Repayment of Long Term Debt by INR 226 Crores in Q1 FY21 including prepayment of high cost loans amounting to INR 140 Crores

▪ Net Debt reduced significantly in Q1 FY21 to reach level of INR 1245 Crores as compared to previous quarter

NET DEBT/EQUITY NET DEBT/EBIDTA

0.4

2.6

FY20 : 0.5 FY20 : 1.9

REPAYMENT (INR CR) CASH PROFIT (INR CR)

226

93

Q1 FY20: 93

Q1 FY20 : 208

Net Debt (INR CR)

==> picture [271 x 117] intentionally omitted <==

----- Start of picture text -----

2621
2344
1614
1245
Mar'18 Mar'19 Mar'20 Jun'20
----- End of picture text -----

==> picture [84 x 16] intentionally omitted <==

7

Q1 FY21 Earnings Presentation - Trident Ltd.

P&L Statement (S)

Particulars	Q1 FY21	Q4 FY20	Shift	FY20	FY19	Shift
Total Income	713.4	997.3	-28.5%	4723.9	5265.3	-10.3%
EBITDA	118.7	152.0	-21.9%	865.3	1023.1	-15.4%
EBITDA %	16.6%	15.2%	-116bps	18.3%	19.4%	-111bps
Depreciation	82.4	81.5	1.1%	333.3	363.9	-8.4%
EBIT	70.4	70.4	-48.5%	532.0	659.2	-19.3%
Finance Cost	23.1	27.8	-16.8%	110.8	112.3	-1.3%
Profit Before Tax	13.2	42.7	-69.1%	421.2	546.9	-23.0%
Profit After Tax	10.1	39.6	-74.5%	341.8	370.9	-7.8%
EPS (INR)	0.02	0.08	--	0.67	0.73	-8.2%
Cash Profit	92.5	121.1	-23.6%	675.1	734.8	-8.1%

==> picture [84 x 16] intentionally omitted <==

8

Q1 FY21 Earnings Presentation - Trident Ltd.

Dividend Pa out y

Year	Total Div%	Div. Amt. (INR Per Share)	Type	%age
FY20	36%	0.36/-	3rd Interim	18%
			2nd Interim	9%
			1st Interim	9%
FY19	30%	0.30/-	Final	6%
			3rd Interim	12%
			2nd Interim	6%
			1st Interim	6%
FY18	15%	0.15/-	Final	3%
			2nd Interim	6%
			1st Interim	6%
FY17	15%	0.15/-	Final	3%
			2nd Interim	6%
			1st Interim	6%

*Dividend Distribution Policy is available at www.tridentindia.com

Dividend Payout Ratio

==> picture [278 x 110] intentionally omitted <==

----- Start of picture text -----

65%
50%
35%
27%
FY17 FY18 FY19 FY20
----- End of picture text -----

Historical Dividends (%age of Face Value)

								36%
						30%
		15%		15%
		FY17		FY18		FY19		FY20

==> picture [84 x 16] intentionally omitted <==

9

Q1 FY21 Earnings Presentation - Trident Ltd.

Management Comment

Commenting on the performance, Mr. Rajinder Gupta, Chairman at Trident Group said:

�Due to covid-19, we are facing collective tough time for the first time when health and wellness are a challenge. Uncertainty is the greatest worry of the current times

We demonstrated high resilience and believe worst is behind us now. We are optimistic and will come back stronger in the coming �ua�te�s�

==> picture [84 x 16] intentionally omitted <==

10

Q1 FY21 Earnings Presentation - Trident Ltd.

Textile - Financials

Sales (INR Crores)

EBIT (INR Crores)

==> picture [559 x 101] intentionally omitted <==

----- Start of picture text -----

1057
142
586
13
Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21
----- End of picture text -----

~~Capacity Utilization~~

==> picture [655 x 171] intentionally omitted <==

----- Start of picture text -----

Towel �I� 000’ to�s� Bed Linen (In mn. meters) Yarn �I� 000’ to�s�
100 49% 48% 55% 75% 95% 98% 92% 105%
90 45% 50% 50 63% 60% 120 95%
65%
80 45% 85%
100
70 40% 40 55% 75%
44%
60 29% 35% 30 38% 45% 80 49% 65%
50 30% 55%
60
40 25% 35% 45%
20
30 20% 25% 40 35%
20 15% 10 15% 20 25%
10 10% 15%
0 5% 0 5% 0 5%
FY18 FY19 FY20 Q1 FY21 FY18 FY19 FY20 Q1 FY21 FY18 FY19 FY20 Q1 FY21
Capacity Utilization
90 90 90 90 43.2 43.2 43.2 43.2 115 115 115 115
----- End of picture text -----

==> picture [84 x 16] intentionally omitted <==

11

Q1 FY21 Earnings Presentation - Trident Ltd.

Paper - Financials

Sales (INR Crores)

==> picture [214 x 100] intentionally omitted <==

----- Start of picture text -----

248
122
Q1 FY20 Q1 FY21
----- End of picture text -----

Capacity Utilization (Tonnage Basis)

==> picture [203 x 126] intentionally omitted <==

----- Start of picture text -----

89% 89% 86% 95%
180
85%
160
75%
140 56% 65%
120
55%
100
45%
80
60 35%
40 25%
20 15%
0 5%
FY18 FY19 FY20 Q1 FY21
175 175 175 175
----- End of picture text -----

EBIT (INR Crores)

==> picture [213 x 74] intentionally omitted <==

----- Start of picture text -----

99
34
Q1 FY20 Q1 FY21
----- End of picture text -----

- Copier v/s Non Copier

==> picture [174 x 38] intentionally omitted <==

----- Start of picture text -----

39%
Copier
Q1 FY21
Non-Copier
----- End of picture text -----

Capacity Utilization

==> picture [84 x 16] intentionally omitted <==

12

Q1 FY21 Earnings Presentation - Trident Ltd.

Financial Performance

Revenue (INR Cr)

==> picture [214 x 102] intentionally omitted <==

----- Start of picture text -----

1313
713
Q1 FY20 Q1 FY21
----- End of picture text -----

EBIDTA (INR Cr)

==> picture [273 x 126] intentionally omitted <==

----- Start of picture text -----

EBIDTA EBIDTA %
400 22.9%
24.0%
350
300 22.0%
250 20.0%
200 16.6% 18.0%
150
16.0%
100
50 301 119 14.0%
0 12.0%
Q1 FY20 Q1 FY21
----- End of picture text -----

==> picture [622 x 137] intentionally omitted <==

----- Start of picture text -----

PAT (INR Cr) Interest Coverage Ratio
9.25
140 123
120
10080 5.14
60
40
20 10
0
Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21
----- End of picture text -----

==> picture [84 x 16] intentionally omitted <==

13

Q1 FY21 Earnings Presentation - Trident Ltd.

Financial Performance

Net Debt (INR Cr.)

Net Debt D/E Ratio

Net Worth (INR Cr)

Net Worth ROE

==> picture [297 x 116] intentionally omitted <==

----- Start of picture text -----

3000 1.0 1.2
2500 0.8 1.0
2000 0.5 0.8
1500 0.4 0.6
1000 0.4
500 0.2
0 0.0
FY18 FY19 FY20 Q1 FY21
2621 2344 1614 1245
----- End of picture text -----

==> picture [297 x 111] intentionally omitted <==

----- Start of picture text -----

16.6%
2400 15.0% 18.0%
2300 13.3% 16.0%
14.0%
2200 1.7% 12.0%
10.0%
2100
8.0%
2000 6.0%
4.0%
1900
2.0%
1800 0.0%
FY18 FY19 FY20 Q1 FY21
2003 2241 2276 2327
----- End of picture text -----

==> picture [661 x 167] intentionally omitted <==

----- Start of picture text -----

Capital Employed Capital Employed ROCE Fixed Assets Fixed Assets Assets Turnover
14.1%
4150 1.1 1.4 1.6
4900 10.6% 16.0% 4100 1.2 1.4
12.5% 4050
4700 14.0% 4000 1.2
4500 12.0% 3950 1.0
4300 10.0%8.0% 39003850 0.8 0.8
4100 3.8% 3800 0.6
6.0%
3900 4.0% 37503700 0.4
3700 2.0% 3650 0.2
3500 0.0% 3600 0.0
FY18 FY19 FY20 Q1 FY21 FY18 FY19 FY20 Q1 FY21
Excludes fair valuation of land as per IND – AS and exceptional items
4800 4676 4234 3792 4078 3848 3826 3773
----- End of picture text -----*

==> picture [84 x 16] intentionally omitted <==

14

Q1 FY21 Earnings Presentation - Trident Ltd.

Key Ratios

Particulars (INR crore)	Q1 FY21	FY20	FY19
Return on Capital Employed*	3.8%	12.5%	14.1%
Return on Equity*	1.7%	15.0%	16.6%
Interest Coverage	5.1	7.8	9.1
Net Debt to Equity	0.4	0.5	0.8
Net Debt / EBITDA	2.6	1.9	2.3

*Excludes fair valuation of land as per IND – AS

Credit ▪ CRISIL AA-/ CARE AA- (LT Bank Facilities) ▪ CRISIL A1+/ CP Rating: Rating: ▪ IND A1+ CRISIL A1+/ CARE A1+ (ST Bank Facilities)

==> picture [84 x 16] intentionally omitted <==

15

Q1 FY21 Earnings Presentation - Trident Ltd.

For more information about us, please visit www.tridentindia.com

Abhinav Gupta/ Ankit Mahajan Investor Relations, Trident Limited

Tel: +91 161 5039 999 Fax: +91 161 5039 900 Email: abhinavgupta@tridentindia.com; ankitmahajan@tridentindia.com

Thank You

==> picture [84 x 16] intentionally omitted <==

16

Q1 FY21 Earnings Presentation - Trident Ltd.