News

Published: November 8, 2024
Updated: November 8, 2024

Trent Ltd Achieves Remarkable 47% Rise in Q2 Net Profit, Boosted by Strong Sales Growth

In a significant stride forward, Tata Group's retail arm, Trent Ltd, recorded an impressive 46.9% surge in its consolidated net profit, reaching Rs 335.06 crore for the second quarter ending September 2024. The company's profits saw a substantial increase from the previous year's Rs 228.06 crore, indicating a positive trajectory despite challenges in consumer sentiment and market seasonality.

Revenue Growth Fuels Trent’s Success

Trent's revenue from operations also witnessed a robust 39.37% jump, rising to Rs 4,156.67 crore in the quarter under review, as compared to Rs 2,982.42 crore in the same period last year. This growth reflects the company's dynamic approach to expanding its market presence across various retail segments, with popular brands like Westside, Zudio, and Star Stores driving the increase.

Rise in Expenses Amid Expansion

The company's total expenses escalated by 48.49%, amounting to Rs 3,743.61 crore for the September quarter. This increase in expenses highlights Trent’s ongoing investment in expanding its store network and enhancing operational capabilities, a move crucial for its continued growth in a competitive market landscape.

Strategic Expansion Across Brands

As of the end of September, Trent Ltd operated 226 Westside stores and 577 Zudio stores, alongside 28 outlets under other lifestyle concepts. During this quarter alone, the company opened seven new Westside and 34 Zudio stores, marking its entry into 27 cities and extending Zudio’s reach to Dubai. Furthermore, the company consolidated operations with nine Westside and 16 Zudio stores.

Chairman’s Perspective

Addressing the market climate, Trent's Chairman Noel N Tata noted that "consumer sentiment has remained relatively muted" due to seasonality and other factors, which have presented challenges for retail. Despite these headwinds, Tata commended the Trent team for delivering strong performance across multiple categories and channels.

Market Reaction

Trent’s shares settled at Rs 6,498.45 on the BSE on Thursday, experiencing a 6.54% decline from the previous day’s close. This market response could reflect investor caution amid rising expenses and seasonal challenges in the retail sector.

Despite external challenges, Trent Ltd has demonstrated resilience and strategic growth, positioning itself as a formidable player in the retail industry. The company’s strong Q2 performance underlines its ability to expand effectively and adapt to market conditions, paving the way for sustained success in the coming quarters.