Trent Limited on Friday recorded a profit jump of 134.7 per cent during the first quarter of FY25 at Rs 391.21 crore in comparison to Rs 166.67 crore during the corresponding quarter of FY24, surpassing estimates. It posted revenue from operations at Rs 4,104.44 crore, recording a growth of 56.2 per cent as against Rs 2,628.37 crore during the same period of previous financial year. The company EBITDA stood at Rs 612.6 crore. According to a CNBC TV18 poll, Trent Ltd was expected to record Q1 profit at Rs 340 crore and revenue for the period was estimated at Rs 3,810 crore.
In a regulatory filing, the company said, “Given the accounting standards, our consolidated revenues do not include revenues of the Trent Hypermarket business. Nevertheless, the reported results include the proportionate share of profitability of this venture and is accounted basis the equity method.”
Noel N Tata, Chairman, Trent Limited, said, “The overall market sentiment remains subdued with increased competitive intensity. On our part, we continue to witness encouraging traction for our lifestyle offerings across brands, concepts, categories and channels. The market opportunity associated with building brands and a pure play direct-to-customer business like ours is immense. We will, therefore, continue with our expansion plans and deepen our store presence with the aim of being ever closer and convenient to customers and reinforcing our brand promise.
“We have applied Trent’s playbook to the Star business and are witnessing strong customer traction. Several new stores were added in Q1 and we expect a steady expansion of our portfolio going forward. The success of own branded products also augurs well for the Star business. We are confident that this business is well poised to shift gears and deliver substantial value to customers and shareholders,” he added.
Trent’s Q1 performance across formats
As of 30th June 2024, Trent Ltd said, its store portfolio included 228 Westside, 559 Zudio and 36 stores across other lifestyle concepts. During the quarter, it opened 6 Westside and 16 Zudio stores across 12 cities. “We continued to expand our footprint across all our fashion formats and we now have a presence across 178 cities. Our business model, strategic choices, and operating disciplines continue to contribute to our differentiated performance. Our strategic choices have enabled us to scale up with enhanced profitability in a challenging and a competitive market,” the company said.
In Q1FY25, the company’s fashion concepts registered double digit LFL growth. Both Westside and Zudio witnessed consistent traction notwithstanding headwinds including the heatwave conditions in certain parts of the country and the general elections. The emerging categories including beauty & personal care, innerwear and footwear, Trent said, continued to gain traction with customers. These emerging categories now contribute to over 20 per cent of its standalone revenues. Meanwhile, Westside.com together with the proposition on the Tata Neu platform continues to grow profitably. This combined online reach grew by over 30 per cent and contributes to over 5 per cent of Westside revenues, it said.
Now, the Star business, consisting of 72 stores, including the addition of 6 stores during the quarter, registered operating revenue growth of 29 per cent in Q1FY25 with LFL growth of over 20 per cent.