The Tata Group’s fashion and retailer Trent’s share price declined 4.5% to a low of Rs 5,160.50 after the company’s consolidated net profit tanked 55% year-on-year to Rs 318 crore in Q4FY25, compared with Rs 704 crore in Q4FY24. The company’s net profit plummeted 36% quarter-on-quarter.
However, the company’s revenue for the reporting quarter rose 28% YoY to Rs 4,217 crore, compared with Rs 3,298 crore recorded in the same quarter a year ago. Its revenue dropped 9.4% sequentially from Rs 4,657 crore posted in Q3FY25. Also, the company’s board approved a dividend of Rs 5 per equity share.
Its standalone net profit for the quarter under review stood at Rs 350 crore, a fall of 46% YoY, compared with Rs 654 crore reported in Q4FY25. As for the revenues, it saw an uptick of 29% YoY at Rs 4,106 crore as against Rs 3,187 crore in the same period a year ago.
In FY25, the consolidated net profit grew 38% YoY to Rs 18,141 crore. Trent operates with a portfolio of over 1000 large-box fashion stores while continuing to selectively refresh its store footprint across concepts. It is now present across 242 cities.
Morgan Stanley on Trent: Maintains Overweight
The international brokerage firm Morgan Stanley maintained its ‘Overweight’ call on the stock with a target price of Rs 6,359 per equity share. According to the broker, the greater-than-expected gross margin compression in Q4FY25 implied some inventory write-offs.
Axis Securities on Trent: Long-term outlook intact
Trent delivered a strong performance in Q4FY25, surpassing expectations. The fashion segment maintained its growth momentum with mid-single-digit like-for-like growth in Q4 and double-digit growth for the whole year. In FY25, revenue rose 40% YoY, and volume growth stood at 40%, which was led by rapid store expansion. The company’s total retail area stood at 13 million square feet (mn sqft). The brokerage maintained its ‘Buy’ call on the stock. However, it cut the target price by 6.3% to Rs 6,650 from Rs 7,100 per equity share. It believes that a sharp correction provides a better entry point, as the long-term outlook remains strong.
Trent’s Q3 result
It recorded a consolidated net profit growth of 33% for Q3FY25, standing at Rs 497 crore, compared with Rs 374 crore in the corresponding period of the last financial year.
The company’s revenue from operations stood at Rs 4,657 crore in Q3FY25, an increase of 34% versus Rs 3,467 crore posted in the corresponding quarter of the previous financial year.
Trent stock performance
The stock price of Trent has declined 1.8% in the last five trading sessions. The stock has fallen 7% in the past one month and eroded 27% of investors’ money in the last six months. However, Trent’s share price has given a return of 18% in the last one year.