In its earnings statement, Trent stated that the growth in the fashion portfolio was in the low-single-digits. Gross Zudio store addition stood at 22 and net additions stood at 19.
Trent’s net profit for the quarter grew by 26% from last year to ₹532 crore. The figure was higher than the CNBC-TV18 poll estimate of ₹495 crore.
Revenue for the quarter, as the company had earlier highlighted in the business update earlier in July, stood at ₹5,666 crore, a growth of 18.5% from last year.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) stood at ₹1,110 crore, a growth of 32.6% compared to the last year’s figure of ₹837.3 crore. A CNBC-TV18 poll had projected the figure to be ₹1,040 crore.
EBITDA margin for the quarter stood at 19.6% compared to 17.5% during the same quarter last year. The figure was also higher than the CNBC-TV18 poll estimate of 17.8%.
Gross margins for the quarter stood at 46.6% from 45.1% last year.
Trent further stated that disruptions due to the West Asia conflict, its impact on supply chain, commodity prices and inflation has potential near-term implications.The company further stated that discretionary demand remains calibrated with consumers balancing aspirations with financial discipline.
Trent has not witnessed any material shifts in the competitive intensity in the recent past, according to its earnings release, with Star, food and grocery business witnessing encouraging consumer traction.
The next leg of growth will be aided by expansion in tier-II and tier-III cities. The company further added that newer cities and stores take two to three years to mature.
Shares of Trent, which jumped as much as 3% after the results announcement, gave up the gains soon after, only to stage a recovery again. The stock is now trading 1.8% higher at ₹3,184.1. The stock is now up 10% so far this year.
