Trent Ltd. Reports Stellar Performance: Net Profit Doubles, Shares Surge
Trent Ltd., a Tata Group company, witnessed a remarkable surge in its shares, gaining 19% following the release of its financial results for the October – December period. The company’s net profit more than doubled, reaching ₹370.6 crore, marking a staggering 140% increase from the previous year and surpassing expectations set by CNBC-TV18’s poll of ₹280 crore.
Revenue for the period also witnessed a significant uptick, rising by 50.5% from the previous year to ₹3,466 crore, exceeding expectations of ₹3,300 crore. Additionally, Trent’s EBITDA margin expanded by over 400 basis points to 18.1%, compared to 14% last year, outperforming expectations of 16.1%.
As of December 31, 2023, Trent’s portfolio boasted 227 Westside stores, 460 Zudio stores, and 28 stores across other lifestyle concepts. During the quarter, the company expanded its footprint by adding five Westside and 50 Zudio stores across 36 cities, including 13 new cities.
The fashion concepts segment witnessed a Like-For-Like growth of over 10% compared to the previous year. Emerging categories such as beauty and personal care, innerwear, and footwear contributed significantly, accounting for 19% of the company’s standalone revenue.
While Trent’s consolidated revenue does not include revenue from Trent Hypermarket, it does incorporate the proportionate share of profitability accounted basis the equity methods. The Star business, comprising 67 stores, reported operating revenue growth of 26% during the quarter, driven entirely by like-for-like stores with strong volume growth.
Trent expressed optimism about the Star business, considering it a key growth engine in its portfolio. The robust financial performance propelled Trent’s shares to close 19% higher at ₹3,625.2, marking a nearly tripled stock value over the last 12 months.
With its stellar performance and strategic expansion initiatives, Trent Ltd. continues to strengthen its position as a leading player in the retail sector, showcasing resilience and adaptability amidst evolving market dynamics.
