Tata Group’s flagship retail arm Trent Ltd, surged over 7 percent in the intra-day trade on Thursday after the company reported significant growth in profit and revenue for the quarter ending December 31, 2022. The company’s consolidated net profit increased 20 percent year-on-year at Rs 167 crore in the December quarter compared to Rs 139.69 crore in the year-ago period.

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Its consolidated revenue from operations surged by 53 percent YoY of Rs 2,303.38 crore in the quarter under review from Rs 1,499.08 crore in the third quarter ended December 31, 2021.

Revenues have scaled up 185 percent over Q3FY20, according to the company.

However, Trent management said that the results for Q3FY23 are not comparable with the corresponding quarter and period of the previous year.

Westside clocked a like-for-like (LFL) growth of 17 percent on YoY. At Westside, the company continues to focus on the curation of the store portfolio to achieve an elevated brand experience even as it pursues its store expansion and improvement program.

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"We have recently entered into a Joint Venture with MAS Group of Sri Lanka. Over time, Trent and MAS would pool their domain expertise to undertake design, development, and manufacturing of a range of intimate wear and other apparel products. We see significant opportunities to leverage the growing reach of our brands to build a differentiated proposition in lingerie, activewear and related categories," Noel N Tata, Chairman, Trent, said.

The company's earnings, before, interest and tax (EBIT) margin for each of Q3 Y23 and 9-month period ending December stood at 9.8 percent.

The retail major said that the performance of the business and the growth momentum encourages it to continue with the expansion agenda over the medium term.

Shares of Trent were trading 7.23 percent higher at Rs 1325.05 apiece at 12.34 PM.

Brokerage house Jefferies has recommended "hold" on Trent stock with an unchanged price target of Rs 1,400 per share, which is 5.66 percent higher than the current share price.

However, Jefferies said that concerns still persist on urban slowdown and valuations.

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(Edited by : C H Unnikrishnan)

First Published:Feb 9, 2023 1:02 PM IST