Trent Q1 Results: Beats estimates on all fronts; profit at ₹425 crore, margins expand

Tata Group’s Trent Ltd. reported its June quarter results today, beating street estimates on all key metrics. The net profit for the quarter came in at ₹424.7 crore, up 8.5% from ₹391.2 crore in the year-ago period. This was above the CNBC-TV18 poll of ₹365 crore.

Revenue grew 19% to ₹4,883 crore from ₹4,104 crore a year ago. Operating performance was particularly robust, with EBITDA rising 38% year-on-year to ₹848 crore, compared to expectations of ₹717 crore. Margins expanded to 17.3% from 15% last year, defying estimates that had projected a decline to 14.2%.

A CNBC-TV18 poll expected Trent’s Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) to grow by 17% from last year to ₹717 crore. However, margins were expected to narrow by 70 basis points to 14.2% from 14.9% on a year-on-year basis.

The company had already shared its business update for the quarter on July 5, where it mentioned that its standalone revenue for the quarter grew by 20% on a year-on-year basis to ₹5,061 crore.

However, Trent’s historical five-year Compounded Annual Growth Rate (CAGR) has been 35%, while the management, at an analyst meet mentioned that a 25% revenue CAGR would be sustainable. The stock, post this statement, had declined 12%. The stock is yet to retest the Pre-July 4 levels.

During the quarter, the company also added one Westside store and 11 Zudio stores.

Shares of Trent ended 1.3% higher on Tuesday at ₹5,320. The stock is still down 4% in the last one month and 25% on a year-to-date basis. At the current price, Trent trades at 82 times financial year 2027 earnings, despite correcting 36% from its 52-week high.

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