Trent Ltd share Price

Trent is India’s leading retailer with a presence across various consumer categories (435+ stores). Inherent strength of brands (Westside, Zudio, Star, Zara) and accelerated store additions have led Trent to be among the fastest growing companies in our retail coverage universe.

• ‘Westside’ (75% 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: 8-9%)
• ‘Zudio’ (25% of sales), the value fashion brand, continues to be the next leg of growth for Trent (revenue CAGR: 50% FY18-21)

Revenue trajectory continued to be robust despite various challenges. However, profitability was lower than our estimates owing to higher opex on new store additions.

•                 Revenue grew 53% YoY to ₹ 1185.26 crore. Two-year CAGR continued to be impressive (28%) and significantly ahead of peers. Westside format registered healthy SSSG of 21% and 16% vs. Q4FY21/20, respectively
• Reported gross margins were 49.1% (down 405 bps YoY) due to lower full price participation in January. Furthermore, pre-operating expenses owing to significant store additions in the fag-end of the quarter led to EBITDA margins declining 480 bps YoY to 12.9%
• Reported higher other income worth ₹ 102 crore (Q4FY21: ₹ 72.4 crore), which includes dividend income from subsidiary, investment income and rental waivers. Subsequently, PAT grew 32% YoY to ₹ 74.9 crore

Department Stores company Trent announced Q4FY23 & FY23 results:

• Consolidated Q4FY23:
  • Revenues for Q4FY23 at Rs 2,336 crore grew by 65% over Q4FY22
  • Profit after tax (attributable to equity shareholders) was Rs 60 crore for Q4FY23
  • Star revenues are up 46% over Q4FY22
• Consolidated FY23:
  • For FY23, the company recorded revenues of Rs 8,799 crore
  • Profit After Tax of Rs 297 crore

Speaking on the performance, Noel N Tata, Chairman, Trent said, “Our lifestyle offerings across concepts, categories and channels are witnessing a strong momentum. We see growing relevance for our offerings, resilience of our business model choices and attractiveness of our differentiated platform. Leveraging our platform, we launched Samoh, our contemporary occasion wear concept. Samoh focuses on elegant, expressive, modern silhouettes and a new approach to wardrobe that emphasizes versatility and caters to an audience that appreciates a luxurious and modern take on cherished designs and motifs from the Indian hinterland. We are also increasingly applying our playbook to the Star business and the strong customer traction we are witnessing gives us growing conviction of building-out this growth engine in the food and grocery space. In the foregoing backdrop, we are continuing to expand the reach of all our concepts with the aim of being ever-more proximate and convenient to our customers. We are in the initial laps of our growth. I see much potential, led by our passionate teams, to address significant opportunities that lie ahead.”

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