Zudio chain operator Trent jumps 8% after multifold rise in Q4 profit

Shares of Tata group company Trent Ltd soared over 8% in trade on Tuesday, April 30, to hit an 52-week high after the fashion and lifestyle retailer posted multi-fold rise in its net profit for the quarter ended March 2024 (Q4FY24).

Trent shares jumped as much as 8.2% to hit a high of ₹4,670 apiece in morning trade on the National Stock Exchange of India (NSE). However, by 11:30 am, the share price pared much of its gains to trade 4.9% higher at ₹4,526 apiece.

Trent shares have tripled in the past one year and are up nearly 50% year-to-date in 2024.

On Monday, Trent announced that its standalone revenue stood at ₹3,187 crore in Q4FY24, up 53% compared to ₹2,077 crore during the same period last year.

The company’s standalone net profit for the March quarter stood at ₹654.3 crore compared to ₹105 crore during Q4 FY23. The sharp spike in profit was due to a one-time exceptional gain of ₹543 crore due to change in accounting standards.

Operating profit, or earnings before interest, tax, depreciation and amortisation (EBITDA) for the March quarter stood at ₹477 crore, which was more than double of ₹211 crore seen in the year-ago period.

Ebitda margins expanded by nearly 500 basis points to 15% in Q4 FY24 compared with 10.2% in Q4FY23.

Trent said that it had 811 fashion concept stores and 66 food and grocery stores as of March 2024. The company operates the Westside, Zudio and Utsa retail fashion chains in the country. As of March, the company’s portfolio included 232 Westside stores, 545 Zudio outlets and 34 stores across other lifestyle concepts.

Separately, Trent’s board of directors also proposed a dividend of ₹3.20 per equity share of face value of ₹1 each, pending shareholder approval.