Yarn maker Trident reports a quarterly decline in profit because exports decline

Indian towel and bedding maker Trident reported a 44% drop in profit on Monday after a US-led export slowdown put pressure on third-quarter sales. Consolidated net profit stood at 442.4 million Indian rupees ($4.88 million) for the three months ended December 31, compared with 797 million rupees a year earlier, according to a regulatory filing.

Total revenue fell 6% to 15.74 billion rupees. Sales from the bed sheet division, which generates a fifth of sales, fell by a third, while towel sales fell by 2%.

Trident supplies many US retailers, including Walmart, Macy’s and Target, and generates more than 40% of its sales from the United States. ‌Other countries, including Europe, contribute about 16%.

Indian textile exporters had been battered by high U.S. tariffs for months, with some seeking new buyers in Europe and offering discounts to U.S. customers to stay afloat.

Earlier this month, US President Donald Trump announced a trade deal with India, cutting tariffs on Indian goods from a maximum of 50% to 18%, just days after New Delhi struck a separate deal with the European Union that provided much-needed relief for exporters.

Trident said its board on Monday approved the creation of a domestic subsidiary to boost foreign sales, with a focus on the United States. No further details were provided.