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Trent Q4 Results: One-time gain aids profit; Margin jumps nearly 500 basis points
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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Summary
Trent’s numbers, though higher year-on-year, were down on a sequential basis.
Tata Group’s Trent Ltd. reported a 53.4% surge in its consolidated revenue for the January-March quarter. The company reported revenue of ₹3,187 crore, compared to ₹2,077 crore during the same period last year.
Net profit for the quarter stood at ₹654.3 crore compared to ₹105 crore during the year-ago quarter. Trent’s bottomline was aided by a one-time gain of ₹543 crore during the quarter.
In its notes to account, Trent highlighted that it had entered into a substantial number of lease contracts, mostly for its store operations and that it has reassessed the estimates of measurement and recognition of the right to use assets and corresponding lease liabilities, which resulted in the exceptional gain.
Trent’s Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter stood at ₹477 crore, compared to ₹211 crore last year, while margin also expanded by nearly 500 basis points to 15% from 10.2% last year.
As of March 31, Trent’s portfolio included 232 Westside stores, 545 Zudio outlets and 34 stores across other lifestyle concepts.
Trent’s Fashion concepts saw like-for-like growth of over 10% compared to the year-ago quarter.
“The emerging categories including beauty & personal care, innerwear and footwear continue to gain traction with customers. These emerging categories now contribute to over 20% of the company’s standalone revenue,” Trent said in a press release.
Westside.com and its proposition on the Tata Neu platform now contributes to over 6% of Westside’s overall topline.
Trent’s Star business continued to witness improved customer traction with growing sales densities. The business registered operating revenue growth of 30% in the March quarter. “We are confident that this business is well poised to shift gears and deliver substantial value to customers and shareholders going forward,” Trent Chairman Noel Tata was quoted as saying.
Shares of Trent ended 0.9% higher on Monday at ₹4,345. The stock is up 210% in the last 12 months.
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