Trent Q2 Results: Profit Jumps 47% YoY to ₹335 Cr, Revenue Soars 39%"

Trent Ltd, part of the Tata Group, released its financial results for Q2 FY25, showcasing a solid performance. The company reported a 46.9% year-on-year growth in consolidated net profit to ₹335.06 crore, up from ₹228.06 crore in the year ago period. Revenue from operations increased by 39.3% to ₹4,156.67 crore, driven by robust sales across fashion and retail segments.

Trent Quarter Results - Quick Insights:

• Revenue: ₹4,156.67 crore, up by 39% YoY.
• Net Profit: ₹335.06 crore, increased by 47% YoY.
• Operating EBIT Margin: Improved to 10.8% in Q2 FY25 from 9.8% in Q2 FY24.
• Segment Performance: Fashion concepts registered double digit growth, with Beauty, Innerwear, and Footwear now contributing over 20% of revenue.
• Management's Take: "Consumer sentiment remains muted, but strategic initiatives and strong brand performance have driven growth."
• Stock Reaction: Trent Shares fell 8% post results as profit figures fell short of market expectations.

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Trent Management Commentary

Noel N Tata, Chairman of Trent Limited, noted the headwinds faced by the retail business due to muted consumer sentiment and seasonal factors. Despite these challenges, he praised the team for delivering strong results across various brands and categories. Tata added that Trent remains focused on expansion, including international forays, as seen with the launch of its first Zudio store in the UAE and a new Zudio Beauty concept in India.

Stock Market Reaction after Trent’s Quarter Results

Following the Q2 results announcement, Trent’s stock price fell 8%, reflecting market disappointment due to a profit shortfall against high expectations. The shares closed at ₹6,398, down significantly from their recent 52-week high of ₹8,345. Despite this drop, Trent has shown strong growth, rising 120% in 2024 alone.

About the Company and Upcoming News

Trent Ltd, a key player in the Indian retail sector, operates over 800 large format stores, including Westside and Zudio. As of September 30, 2024, Trent's portfolio included 226 Westside stores and 577 Zudio stores, with new expansions in 27 cities this quarter. The company is exploring new growth avenues and remains focused on store footprint expansion in both domestic and international markets.