Trent surges 15% to hit record high after stellar Q3 results, profit up 140%

Trent Q3 results: Trent Ltd., a leading retail player under the Tata Group umbrella, has posted impressive financial results for the third quarter ending December 31, 2023, sending its shares soaring by 15 per cent to a record high of Rs 3,490.25 apiece on the NSE on Wednesday, February 7. The company witnessed a remarkable surge in net profit, which more than doubled compared to the same period last year.

During Q3 FY24, Trent reported a staggering 140 per cent increase in net profit, soaring to Rs 370.6 crore, outperforming the street estimates. This substantial profit surge fuelled investor optimism, propelling the company's shares to new heights.

Revenue for the quarter experienced a robust growth of 50.5 per cent, reaching Rs 3,466 crore, surpassing market expectations of Rs 3,300 crore. Furthermore, earnings before interest, tax, depreciation, and amortisation (EBITDA) surged by an impressive 95 per cent year-on-year to Rs 629 crore, exceeding estimates of Rs 545 crore. The EBITDA margin expanded significantly by over 400 basis points to 18.1 per cent, demonstrating Trent's operational efficiency and profitability.

Trent's retail footprint witnessed notable expansion during the quarter, with the addition of five Westside and 50 Zudio stores across 36 cities, including 13 new cities. The company's fashion concepts exhibited strong like-for-like growth of over 10 per cent, reflecting the resilience and appeal of its offerings.

The Star business segment, comprising 67 stores, reported a remarkable operating revenue growth of 26 per cent during Q3 FY24. Notably, this growth was predominantly driven by like-for-like stores, underscoring Trent's ability to attract and retain customers effectively.

Emerging categories such as beauty and personal care, innerwear, and footwear continued to gain traction, contributing over 19 per cent to Trent's standalone revenue. The firm's online revenues, facilitated through platforms like Westside.com, also witnessed profitable growth, now constituting over 5 per cent of Westside revenues.

Noel N Tata, Chairman of Trent, expressed optimism about the company's strong momentum in Q3 FY24, emphasising the growing scale of operations and the strategic significance of its differentiated platform.