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Trent Q3FY25 – operating performance in-line; LFL moderated to high single digit

ICICIdirect Research 07 Feb 2025 DISCLAIMER

Trent net revenues grew by 37%yoy to Rs453.7crore (grew by 45% on 2 years CAGR basis). EBIDTA grew by 34%yoy to Rs837.6crore. Reported PAT grew by 36.6%yoy to Rs469.3crore (lower than street expectation of Rs514crore).

Like-for-like (LFL) growth stood in high single digit as against double digit earlier which led to market disappointment.

The company added 76 new stores on compared to Q2 (including 58 Zudios stores). Total area stood 12.6mn sq.ft, a 40% increase on y-o-y basis).

Avg. revenue per sq.ft stood at Rs4,467.7 per sq.ft vs. Rs4078.8 per sq.ft  (5% growth QoQ).
Trent is one of the better plays in the value-retail space with strong store expansion strategy and efficient business model. Stock has corrected by 37% from its recent high and is trading at 35x its FY27E EV/EBIDTA. It provides good opportunity to accumulate the quality retail play.

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