Trent Q2 results on November 7: Strong revenue, net profit growth expected on store expansion

The Tata Group company is expected to report stellar growth in revenue and net profit driven by store expansion in the second quarter of FY25. The growth is likely to be more than industry average for the Q2 of FY25, according to experts.

Trent may report healthy revenue growth

According to Investing.com, Trent is likely to post revenue of ₹4,342 crore for the September quarter of FY25 against consolidated revenue of ₹3,164 crore in the year-ago period, reflecting a 37% jump year-on-year.

Experts predict that Trent is likely to report revenue in the range of ₹4,278 crore to ₹4,481 crore in Q2FY25.

The company is also expected to report robust growth in the range of 37% to 73% in net profit for the September quarter on the back of improved margins and store productivity levels. Net profit in the September quarter is likely to be in the range of ₹444 crore against consolidated net profit of ₹228.06 crore in the corresponding quarter of the preceding fiscal.

Retail expansion, store productivity to drive profitability

According to experts, retail expansion of Zudio stores and store productivity is likely to drive profitability in the second quarter of FY25. The investors will focus on retail expansion in the second quarter as well as future plans for large and small cities in the company’s Q2 result declaration.

Rise in demand for value fashion is also expected to drive revenue and profit growth. Experts believe value retailers to witness double-digit growth while premium players may post a subdued performance due to weak demand environment.

Market experts will also focus on same-store-sales-growth for Trent, along with footprint additions.

As of June quarter of FY25, Trent Ltd had a portfolio of 823 fashion stores as it opened 25 stores during the quarter. It has a presence in 178 cities and its portfolio included 228 Westside, 559 Zudio and 36 stores across other lifestyle concepts.

During the June quarter, the company opened 6 Westside and 16 Zudio stores across 12 cities.

Trent may post improvement in margins

Experts believe Trent Ltd to report up to 150 basis points improvement in gross margins. The gross margin profile of Westside and Zudio remained consistent with earlier trends in the June quarter. Operating EBIT margin for Q1FY25 was 10.6% against 7.8% for Q1FY24.

Trent posted two-fold jump in profit in Q1FY25

Trent Ltd had reported a two-fold jump in consolidated net profit to ₹391.21 crore for the June quarter of FY25 against ₹166.67 crore for the April-June period of FY23. Revenue from operations rose by 56 % to ₹4,104.44 crore during the quarter.

Trent share price

Trent shares were trading in the red on Wednesday a day ahead of the Q2 results. The stock closed 0.55% lower at ₹6,929 apiece on the NSE.

The Tata Group stock has dropped 4.75% in the last five sessions and 5.38% in the last one month. The stock has, however, gained more than 125% this year so far and 209% in the last one year.