Now Reading: Trent Q1 profit jumps 21% to Rs 519 crore; analysts divided
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Trent Q1 profit jumps 21% to Rs 519 crore; analysts divided
Trent reported a 21% year-on-year rise in consolidated net profit to Rs 519 crore for the June quarter, with revenue up 18% to Rs 5,755 crore. Standalone profit after tax grew 26%…
The Story in Brief
Trent reported a 21% year-on-year rise in consolidated net profit to Rs 519 crore for the June quarter, with revenue up 18% to Rs 5,755 crore. Standalone profit after tax grew 26% to Rs 532 crore, and EBITDA surged 33% to Rs 847 crore, with margins expanding 208 basis points to 19.6%.
The company opened one Westside and 22 Zudio stores in Q1, taking its total store count to over 1,300 across 330 cities. Despite the earnings beat, shares fell 3.5% on Friday as analysts split on valuation, with some raising targets and others cautioning on muted like-for-like growth.
The Indian Opinion
Trent's margin expansion and store additions are impressive, but its trailing PE of 91 makes one wonder if the good news is already priced in. The narrative that retail consumption is surging overlooks the muted like-for-like growth and input cost pressures flagged by management. The real test will be whether same-store sales pick up in the coming quarters.
Sources (2): retail.economictimes.indiatimes.com, thehindubusinessline.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
