Trident’s Surprise Spin-Off: Is THTL Just the Beginning?

Trident Ltd has announced its decision to fully disinvest its shareholding in Trident Home Textiles Ltd (THTL), marking a significant shift in its corporate strategy. The move is part of a broader effort to streamline operations and optimize capital allocation across its core verticals—textiles, paper, and chemicals.

 

While the company has not disclosed the financial details or buyer identity, the disinvestment signals a pivot toward consolidating its primary business lines and potentially unlocking value for shareholders. THTL, a wholly owned subsidiary, has been instrumental in Trident’s global textile footprint, particularly through its step-down subsidiary, Trident Global BV. The latter recently received a capital infusion of €15,000 from THTL, indicating ongoing restructuring within the group.

 

This announcement follows a mixed financial performance in Q4 FY24, where Trident reported a 54.8% drop in net profit to ₹59 crore, despite a 7% rise in revenue to ₹1,682 crore. EBITDA margins also contracted sharply, reflecting cost pressures and operational challenges.

 

Market reaction has been cautiously optimistic. Trident’s stock saw a 6.8% intraday surge on the BSE, buoyed by investor sentiment around the company’s renewed focus on core assets and potential for leaner, more agile operations.

 

As Trident exits THTL, all eyes are on how it redeploys capital and whether this move sets the stage for future acquisitions or deeper investments in high-margin segments.

 

Sources: Business Standard, Economic Times, Exchange Filings.