Trent is India’s leading retailer with a presence across various consumer categories (600+ stores). Inherent strength of brands (Westside, Zudio, Star, Zara) and accelerated store additions has led Trent to be among the fastest growing companies in our retail coverage universe.
‘Westside’ (70% of revenues) has proven to be one of the most profitable business models as it primarily focuses on selling private label brands (EBITDA margin: 11%, consistent SSSG: 10%+)
‘Zudio’ (30% of sales), the value fashion brand, continues to be the next leg of growth for Trent (revenue CAGR: 72% FY19-22)
Q3FY23 Results:
Trent reported superlative sales number with growth beating our/consensus estimates. Acceptance of Zudio as a value fashion brand has been a game changer for Trent leading to fastest growing apparel company in India.
On a slightly favourable base, revenue grew 61% YoY to ₹ 2171 crore. On a three-year CAGR basis, revenue growth was at an impressive 36%, which is the highest among other lifestyle retailers
Gross margins for the quarter declined 590 bps YoY to 45.4% (I-direct estimate: 49%) possibly on account of a sharp rise in share of Zudio format (yields lower gross margins but has superior asset turn)
Higher opex cost on account of new store openings resulted in EBITDA margins declining 620 bps YoY to 15.5%. Despite lower than anticipated margins, absolute EBITDA was at ₹ 336 crore (I-direct estimate: ₹ 337 crore) with three-year CAGR of 25%
Department Stores company Trent announced Q3FY24 results:
Consolidated Q3FY24:
Revenues (incl. GST): Rs 3,686 crore in Q3FY24 versus Rs 2,460 crore in Q3FY23, witnessing a 50% increase from the previous year. The three-year CAGR is reported at 37%.
Profit Before Tax (PBT): Rs 475 crore in Q3FY24 in comparison to Rs 204 crore in Q3FY23, which is a 132% increase year-over-year. The CAGR over the same period is 50%.
Standalone Q3FY24:
Revenues (incl. GST): Rs 3,521 crore in Q3FY24 compared to Rs 2,319 crore in Q3FY23, marking a 52% growth year-over-year. The Compound Annual Growth Rate (CAGR) from Q3FY20 was 39% for revenues.
Profit Before Tax (PBT): Rs 447 crore in Q3FY24, a significant increase from Rs 210 crore in Q3FY23, showing a growth of 113%. The PBT CAGR over Q3FY20 stood at 47%.
The company added 56 new stores in Q3, expanding its fashion store portfolio to 715 stores.
Operating EBIT margin for Q3FY24 was noted as 13.0% (8.5% for Q3FY23).
Operational Highlights:
Store Expansion: 5 new Westside and 50 new Zudio stores opened, with expansions into 36 cities, including 13 new cities.
Like-For-Like (LFL) Growth: Over 10% LFL growth in fashion concepts compared to Q3FY23.
Emerging Categories: Contribution of over 19% to the standalone revenues, indicating customer traction.
Online Revenues: Representing more than 5% of Westside revenues, showing profitable growth.
Star Business Performance
Registered 26% revenue growth in Q3FY24 over Q3FY23, primarily attributed to like-for-like stores and volumetric growth.
All-round Operating Performance Improvement driven by staples, fresh & general Merchandise.
Speaking on the performance, Noel N Tata, Chairman of Trent, stated, "Our lifestyle offerings across concepts, categories, and channels witnessed strong momentum in Q3FY24. The growing scale of our operations distinctly enables us to realize greater operating synergies. We continue to see growing relevance for our offerings, resilience in our business model choices, and attractiveness of our differentiated platform.
We will continue to expand and deepen our store presence with the aim of being ever more proximate and convenient to customers, reinforcing our brand promise. We believe that our strategic differentiators will continue to provide us encouraging tailwinds.
We have applied our playbook to the Star business and are witnessing strong customer traction, instilling a growing conviction to build out this growth engine in the food and grocery space. We are confident that this business is also well poised to shift gears and deliver substantial value to customers and shareholders going forward.
The growing acceptance of our brands demonstrates the attractiveness of our platform and the tremendous potential to address opportunities that lie ahead.”
Trent Ltd is in the Retail sector is having a market capitalization worth Rs. 31,894.29 crores, it is incorporated in the year 1998. It has reported consolidated sales of Rs. 491.99 crores in June’2021. The company is listed on the Bombay Stock Exchange (BSE) with the code 500251, and also listed on the National Stock Exchange (NSE) with the code TRENT.
Trent Ltd is the retail hand of the Tata Group. The headquarters of Trent Ltd is located in Mumbai. Trent Ltd operates Westside (a growing chain in India) and Landmark (a book store chain). Trent Ltd was formed from the funds released after the Tata group sold 50% of their stake in the cosmetics products company Lakme. Apart from Westside and Bookstore, Trent ltd also oversees the operations of Zudio (offering affordable clothes for men, women, and children), Star (offering an assortment of products, including staples, beverages, health & beauty products), and Booker Wholesale (offering best choice, price, and service to Kirana stores, traders, wholesalers). The promoters of the company own 37.01% of the stake in the company, Foreign Institutional Investors (FII) own 30.28%, Domestic Institutional Investors (DII) own 7.76% stake in the company, and others (such as public & retail investors) hold the balance of 24.96%.
In June 2021, quarterly net revenue was Rs. 327.29 crores, which has increased sharply by approximately 239.76 % from Rs. 96.33 crores for the April-June 2020 quarter. The quarterly net loss in June 2021 was Rs. 83.76 crores, which has improved and increased by nearly 39.94% from a net loss of Rs. 139.46 crores in June 2020. In June 2021, the reported operating profit was at Rs. 248.80 crores, which is also increased by 218.48% as compared to an operating profit of Rs. 78.12 crores for the quarter ending in June 2020. From a negative EPS of Rs. 3.92 in June 2020, the EPS of Trent Ltd has improved and reached a negative EPS of Rs. 2.36 per share in June 2021. TRENT's stock closed at Rs. 897.20 on 20th August’2021 (NSE) and has returned 15.17% in the last six months and 52.21% in the previous year.
Trent Ltd is in the Retail sector is having a market capitalization worth Rs. 31,894.29 crores, it is incorporated in the year 1998. It has reported consolidated sales of Rs. 491.99 crores in June’2021. The company is listed on the Bombay Stock Exchange (BSE) with the code 500251, and also listed on the National Stock Exchange (NSE) with the code TRENT.
Trent Ltd is the retail hand of the Tata Group. The headquarters of Trent Ltd is located in Mumbai. Trent Ltd operates Westside (a growing chain in India) and Landmark (a book store chain). Trent Ltd was formed from the funds released after the Tata group sold 50% of their stake in the cosmetics products company Lakme. Apart from Westside and Bookstore, Trent ltd also oversees the operations of Zudio (offering affordable clothes for men, women, and children), Star (offering an assortment of products, including staples, beverages, health & beauty products), and Booker Wholesale (offering best choice, price, and service to Kirana stores, traders, wholesalers). The promoters of the company own 37.01% of the stake in the company, Foreign Institutional Investors (FII) own 30.28%, Domestic Institutional Investors (DII) own 7.76% stake in the company, and others (such as public & retail investors) hold the balance of 24.96%.
In June 2021, quarterly net revenue was Rs. 327.29 crores, which has increased sharply by approximately 239.76 % from Rs. 96.33 crores for the April-June 2020 quarter. The quarterly net loss in June 2021 was Rs. 83.76 crores, which has improved and increased by nearly 39.94% from a net loss of Rs. 139.46 crores in June 2020. In June 2021, the reported operating profit was at Rs. 248.80 crores, which is also increased by 218.48% as compared to an operating profit of Rs. 78.12 crores for the quarter ending in June 2020. From a negative EPS of Rs. 3.92 in June 2020, the EPS of Trent Ltd has improved and reached a negative EPS of Rs. 2.36 per share in June 2021. TRENT's stock closed at Rs. 897.20 on 20th August’2021 (NSE) and has returned 15.17% in the last six months and 52.21% in the previous year.
Trent share price as on 26 Apr 2024 is Rs. 4308.45. Over the past 6 months, the Trent share price has increased by 116.15% and in the last one year, it has increased by 211.91%. The 52-week low for Trent share price was Rs. 1306.2 and 52-week high was Rs. 4373.
Company share prices and volatile and keep changing according to the market conditions. As of Apr 26, 2024 02:24 PM the closing price of Trent Ltd was ₹ 4,308.45.
Market capitalization or market cap is determined by multiplying the current market price of a company’s shares with the total number of shares outstanding. As of Apr 26, 2024 02:24 PM, the market cap of Trent Ltd stood at ₹ 153,161.09.