Trent’s Impressive Q3 Results Drive Shares Up 15%

Trent, a subsidiary of the Tata Group, witnessed a significant surge in its stock by 15% following the release of its better-than-expected financial results for the third quarter. The retailer’s shares reached a high of Rs 3,489.65 on the Bombay Stock Exchange (BSE).

During the December quarter, Trent reported a remarkable YoY increase of 124% in net profit, totaling Rs 374.36 crore compared to Rs 167 crore in the same period last year. Similarly, revenue showed a growth of 50.50% amounting to Rs 3,466.62 crore, up from Rs 2,303.38 crore in the corresponding quarter of the previous year.

Noel N Tata, Chairman of Trent, expressed his satisfaction with the company’s performance, attributing it to their diverse lifestyle offerings across different concepts, categories, and channels. He also emphasized the positive impact of operating synergies resulting from Trent’s expanding operations.

Trent is determined to continue expanding its store presence, reflecting their belief in the enduring relevance of their offerings, resilience in business model choices, and attractiveness of the differentiated platform they provide.

Noel N Tata specifically mentioned Trent’s successful venture in the food and grocery space through the Star business. The company is witnessing strong customer engagement and is confident in their ability to deliver substantial value to both customers and shareholders in this segment. Trent plans to further develop this growth engine.

Trent’s operating EBIT margin for Q3FY24 stood at 13%, a notable improvement from 8.5% in the same quarter of the previous year. Presently, Trent operates 227 Westside stores, 460 Zudio stores, and 28 stores across various lifestyle concepts.

During the quarter, Trent successfully added 5 new Westside stores and 50 Zudio stores in 36 cities, including 13 new cities. This expansion strategy further fueled the positive momentum and growth of the company.