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Trent Q3 Results: Shares surge 19% to a record high after profit doubles year-on-year
Shares of Trent Ltd., the Tata Group company gained 19% after the company's net profit more than doubled during the October - December period. Net profit for the period increased by 140% from last year to ₹370.6 crore. The figure was also higher than the CNBC-TV18 poll of ₹280 crore. Revenue for the period increased by 50.5% from last year to ₹3,466 crore and also surpassed expectations of ₹3,300 crore. Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) grew 95% from last year to ₹629 crore, surpassing estimates of ₹545 crore. EBITDA margin expanded by more than 400 basis points to 18.1% from 14% last year and also beat expectations of 16.1%. As of December 31, 2023, Trent's portfolio included 227 Westside, 460 Zudio and 28 stores across other lifestyle concepts. It added five Westside and 50 Zudio stores across 36 cities, including 13 new cities during the quarter. Fashion concepts during the quarter saw Like-For-Like growth of over 10% compared to last year. Emerging categories, including beauty and personal care, innerwear and footwear contributed 19% to the company's standalone revenue. However, the consolidated revenue does not include revenue from Trent Hypermarket but includes the proportionate share of profitability accounted basis the equity methods. The Star business currently has 67 stores and reported operating revenue growth of 26% during the quarter. All of that growth came from like-for-like stores with strong volume growth. "We see Star as a key and additional growth engine in our portfolio," the company said. Shares of Trent ended 19% higher at ₹3,625.2. The stock has nearly tripled over the last 12 months. Source - CNBC
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