Trent Ltd Posted Huge Q4 Profit Rise to Rs.712.09 Crore

Trent Ltd Posted Huge Q4 Profit Rise to Rs.712.09 Crore
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In the latest financial report, Trent Ltd, the retail arm of the Tata Group, revealed a significant surge in profits for the fourth quarter ending March 2024. Consolidated net profit soared to Rs 712.09 crore, marking a substantial increase from the previous year’s Rs 44.95 crore. This remarkable growth was attributed to exceptional item gains. Operating under brand names like Westside, Zudio, and Star, Trent Ltd reported a 51% rise in consolidated revenue from operations, reaching Rs 3,297.70 crore compared to Rs 2,182.75 crore in the corresponding period last year.

During the quarter, Trent reevaluated its estimates for the measurement and recognition of right-of-use assets, including related security deposits and corresponding lease liabilities for its store operations, resulting in a gain of Rs 576.07 crore. Total expenses for Trent increased by 39.21% in the March quarter to Rs 3,073.54 crore for FY24. The company clarified that under accounting standards, the consolidated top line does not include revenues from its Trent Hypermarket business but incorporates a proportionate share of its profitability through the equity method.

Trent’s total consolidated income for the March quarter reached Rs 3,374.57 crore, marking a 48.8% increase. The gross margin profiles of Westside and Zudio remained consistent with previous trends. Overall, the operating EBIT margin for Q4FY24 stood at 8.2%. As of March 31, 2024, Trent operated 232 Westside, 545 Zudio, and 34 stores across other lifestyle concepts.

“We expanded our presence significantly during the quarter, opening 12 new Westside and 86 Zudio stores in 65 cities, including 25 new cities,” the company reported. For the financial year ending March 31, 2024, Trent’s net profit surged three-fold to Rs 1,477.46 crore, compared to Rs 393.63 crore in the previous year. The total income of the Tata Group firm in FY24 reached Rs 12,664.38 crore, marking a 49% increase.

Noel Tata Chairman said, “In a competitive market, we continue to experience resonance and customer traction for our lifestyle offerings across brands, concepts, categories and channels. The growth of our offerings, resilience of our business model choices and the strength of our platform are reflected in our business results.”

Tata expressed confidence in Trent’s future expansion, citing robust customer interest in the food, grocery, and general merchandise sectors. This momentum reaffirms their commitment to nurture Trent as a key growth driver. They remain optimistic about the vast consumer market potential ahead, emphasizing that they are still in the early stages of tapping into this opportunity.

In a meeting held on Monday, the company’s board recommended a dividend of 320 percent, amounting to Rs 3.20 per equity share of Re 1 each, pending shareholder approval. Trent Ltd’s shares closed at Rs 4,351.45 on the BSE on Monday, marking a 1.08% increase from the previous day’s close.

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