Trent Ltd on Thursday released its fiscal second quarter earnings with consolidated profit at Rs 335.06 crore, registering a growth of 46.9 per cent in comparison to Rs 228.06 crore during the same period of previous financial year, missing estimates. It posted revenue from operations at Rs 4,156.67 crore, up 39.4 per cent as against Rs 2,982.42 crore during the second quarter of FY24. The company EBITDA stood at Rs 642 crore.
According to a CNBC TV18 poll, Trent was expected to record Q2 profit at Rs 428 crore and revenue for the quarter in review was estimated at Rs 4295 crore.
“Given the accounting standards, our consolidated revenues do not include revenues of the Trent Hypermarket business. Nevertheless, the reported results include the proportionate share of profitability of this venture and is accounted basis the equity method,” it said.
The Hosteller secures funding worth Rs 48 crore in Series A round, aims to expand to 10000 beds by March 2026
HCL Tech secures order from New Zealand’s Tasman district council to accelerate digital transformation
Q2 Result 2024 Live Updates: M&M, Trent, Lupin, Escorts Kubota, Bajaj Electricals, Emami, others releasing Q2 results today
Kansai Nerolac Paints posts Q2 profit at Rs 122.79 crore, down 30.7% YoY; Anuj Jain says demand expected to improve in H2
In an otherwise subdued consumer market, Trent said that key initiatives including with respect to the product offer, the store portfolio and the operating supply chain helped it deliver encouraging results. “The change in revenue profile across our concepts remains broadly in line with our strategic objectives and plans. The gross margin profile of Westside and Zudio remains consistent. Overall, the Operating EBIT margin for Q2FY25 was 10.8 per cent (9.8 per cent for Q2FY24),” the company said.
In Q2, the company’s fashion concepts registered double digit LFL growth, with both Westside and Zudio witnessing traction in spite of business seasonality. The emerging categories including beauty & personal care, innerwear and footwear too continued to gain traction with customers. These categories contribute to over 20% of the company’s revenues. Westside.com together with the proposition on the Tata Neu platform continued to grow profitably and this combined online reach contributes to over 5 per cent of Westside revenues.
Noel N Tata, Chairman, Trent Limited, said, “Consumer sentiment has remained relatively muted. This coupled with seasonality has meant that retail businesses have faced headwinds. In the forgoing context the team has delivered strong results across brands, concepts, categories and channels in Q2. The market opportunity associated with building brands and a pure play direct-to-customer business like ours remains immense.”
Network presence
Trent operates with a significant portfolio of over 800 “large-box” fashion stores. In Q2, the company continued to expand its store footprint across concepts, with presence across 184 cities. As of 30th September, the store portfolio included 226 Westside, 577 Zudio and 28 stores across other lifestyle concepts. During the quarter, Trent opened 7 Westside and 34 Zudio stores (including 1 in Dubai) across 27 cities. The firm also consolidated 9 Westside and 16 Zudio stores.
“We continue to pursue our expansion programme and deepen our store presence with the aim of being ever closer and convenient to customers. Also, we seek to explore additional avenues of growth. It is in this context that we recently launched our first international Zudio store in the UAE and the Zudio Beauty concept in India. We have applied Trent’s playbook to the Star business and are witnessing strong customer traction. The success of own branded products augurs well for the Star business. We are confident that this business is well poised to shift gears and deliver substantial value to customers and shareholders,” Noel N Tata added.
From: financialexpress
Financial News
