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Informist, Thursday, Nov. 7, 2024

 

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--Trent Jul-Sept net profit INR 4.23 bln 
--Analysts saw Trent Jul-Sept net profit INR 4.18 bln 
--Trent Jul-Sept net profit INR 4.23 bln vs INR 2.90 bln year ago 
--Trent Jul-Sept revenue INR 40.36 bln vs INR 28.91 bln year ago 
--Trent Apr-Sept net profit INR 7.66 bln vs INR 4.38 bln year ago 
--Trent Apr-Sept revenue INR 80.27 bln vs INR 54.27 bln year ago 
--Trent: Westside opened 7 stores in Jul-Sept 
--Trent: Zudio opened 34 stores in Jul-Sept
--Trent: Westside total store count at 226 at end of September 2024 
--Trent: Zudio total store count at 577 at end of September 2024 
--Trent: Jul-Sept operating EBIT margin 10.8% vs 9.8% year ago 
--Trent: Star stores revenue grew 27% on year in Jul-Sept 
--Trent:Star stores own brand revenue in Jul-Sept contribute to 73% of sales 

 
By Avishek Rakshit

 

KOLKATA – Muted consumer sentiments and seasonality of sales made Trent Ltd. miss the Street's projections on its revenue by a significant margin, although the company's profit after tax was marginally higher than the projections for Jul-Sept.

 

Trent reported a 46.2% on-year growth in its profit after tax at INR 4.2 billion during Jul-Sept, which was marginally higher than the Street's projections. The revenue missed the Street's projections of 42.9 billion, although it grew by 39.6% on year at INR 40.4 billion. 

 

"Consumer sentiment has remained relatively muted. This coupled with seasonality has meant that retail businesses have faced headwinds," Noel N. Tata, chairman at Trent said in a statement. 

 

In the statement, Trent said that it now operates over 800 large-box fashion stores. In the Jul-Sept period, Trent opened seven new Westside branded, and 34 Zudio branded stores across 27 cities. "We also consolidated 9 Westside and 16 Zudio stores," the statement said.

 

As of Sept. 30, Trent has a portfolio of 226 Westside and 577 Zudio stores.

 

In an otherwise subdued consumer market, the Tata Group company took initiatives like sales promotion offers in the stores. It also undertook some changes in the product portfolio mix to maximise revenue. To curb costs, it also took some initiatives over the operating supply chain, it said in the statement. It resulted in consistent gross margins from Westside and Zudio, and the operating earnings before interest and tax margin grew to 10.8% from 9.8% a year-ago.

 

Fashion concepts across its stores registered double-digit like-for-like growth. Both Westside and Zudio witnessed traction in spite of business seasonality, the company said, adding that its Westside loyalty program - WestStyleClub, registered strong growth. 

 

Trent said that emerging categories including beauty & personal care, innerwear and footwear continued to gain traction with customers and these contributed 20% of its Jul-Sept revenues.

 

The revenue from the Star brand of stores grew 27% on year in Jul-Sept and the company's own brand of products accounted for 73% of sales in Jul-Sept. 

 

Although the company’s finance costs declined by 64.9% on-year to INR 323.8 million, other cost overheads surged. Purchase of stock-in-trade rose 52.9% on year at INR 26.6 billion, and employee benefit expenses rose 36.8% on year at INR 2.9 billion. Depreciation and amortisation expenses rose 32.2% on year at INR 1.9 billion, and rents rose 46.5% on year at INR 4.0 billion. Overall, Trent’s total expenses were up by 35.7% on year at INR 36.2 billion. 

 

During Apr-Sept, Trent reported a net profit of INR 7.7 billion, up 74.8% on year on revenues of INR 80.3 billion, up 47.9% on year.

 

At 1353 IST, shares of Trent traded 7.2% down at INR 6,451.0 on the National Stock Exchange.  End
 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Vidhi Verma

 

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