Trent Q2 results: Zudio operator posts 47% increase in net profit, revenue up 39%

In the year-ago period, the net profit stood at ₹228.06 crore.

Tata Group company's revenue from operations surged 39.3% to ₹4,156.67 crore, compared to ₹2,982.42 crore in the corresponding period last fiscal.

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) stood at ₹642 crore, an increase of 41% from ₹456.5 in the year-ago period. The margin increased ten basis points (bps) to 15.4%.

Trent share price: Stock down over 7%

Following the results, shares of Trent declined 7.2% to ₹6,453.2 per share on the NSE.

On the BSE, it was down 6.5% to ₹6498.7 apiece.

In an exchange filing, the company, which also runs the Westside and Star supermarket chains, informed that it operates more than 800 'large-box' fashion stores. As of September 31, 2024, it has a presence in 184 cities.

"Our store portfolio included 226 Westside, 577 Zudio and 28 stores across other lifestyle concepts. During the quarter, we opened 7 Westside and 34 Zudio stores (including 1 in Dubai) across 27 cities. We also consolidated 9 Westside and 16 Zudio stores," Trent said.

The Star business, consisting of 74 stores, witnessed improved consumer traction coupled with growing sales density, it added.

Speaking on the performance, Noel N Tata, Chairman of Trent, said, "Consumer sentiment has remained relatively muted. This coupled with seasonality has meant that retail businesses have faced headwinds. In the forgoing context the team has delivered strong results across brands, concepts, categories and channels in Q2."

"We have applied Trent’s playbook to the Star business and are witnessing strong customer traction. The success of own branded products augurs well for the Star business," he added.