Trent Limited
Trent Ltd is engaged in retailing of apparels, footwear, accessories, toys, games, food, grocery & non food products through various of its retail formats/ concepts.
The company is a part of the Tata group, with the Tata group holding ~37% (Tata Sons Pvt Ltd holding 32.45%) as of Mar 24. Tata Group comprises 100 operating companies, in various business sectors. The group operates in over 80 countries across 6 continents. The company operates 875+ stores as of FY24 (vs 681 stores as of FY23) through different store concepts.)
Key Brands
- Westside (~39% revenue share)
- Zudio (~55% revenue share)
- Utsa
- Misbu
- Samoh
- Zara and Massimo Dutti
- Grocery Retailing- Star
Shareholding Pattern
-PUBLIC GROUP
-PROMOTER GROUP
Financial Summary
| Particulars | March 2024 | March 2023 | March 2022 |
| Sales | 12,375 | 8,242 | 4,498 |
| Sales Growth % | 50% | 83% | 73% |
| Expenses | 10,404 | 7,128 | 3,903 |
| Operating Profit | 1,971 | 1,114 | 595 |
| OPM % | 16% | 14% | 13% |
| Net Profit | 1,477 | 394 | 35 |
| EPS in Rs | 41.82 | 12.51 | 2.98 |
Synopsis of Financials
- In FY24, the company saw a 50% YoY revenue growth with a 16% OPM, driven by Zudio store expansion and strong LTL sales.
- However, its non-apparel formats (Landmark, Booker India) and JVs like Star Bazaar still incurred losses, though losses at Star Bazaar and Booker decreased compared to FY23.
Final Outlook
Trent ,a leading retail company has reported a strong financial performance for the quarter ending march 2024 .The company has shown significant improvement in its score with a high operating profit to interest ratio and a growing operating cash flow. Trent profitability remarkable growth with a low debt equity ratio and high net sale .one of the key factor contributing to this success is the interest payment with an operating profit to interest ratio of 19.42 times. This ratio has been consistently growing over the last five quarter indicating the Trent strong financial management.
Overall Trent is a promising investment option in the retail industry.
- Company has reduced debt.
- Company is expected to give good quarter
- Company has delivered good profit growth of 56.5% CAGR over last 5 years
- Company has been maintaining a healthy dividend payout of 27.4%
- Company’s median sales growth is 19.0% of last 10 years
- Company’s working capital requirements have reduced from 39.0 days to 28.3 days
