Q4FY22 Result Update - Trent Ltd - ICICI Direct

Revenue trajectory continued to be robust despite various challenges. However, profitability was lower than our estimates owing to higher opex on new store additions.

- Revenue grew 53% YoY to Rs. 1185.26 crore. Two-year CAGR continued to be impressive (28%) and significantly ahead of peers. Westside format registered healthy SSSG of 21% and 16% vs. Q4FY21/20, respectively

- Reported gross margins were 49.1% (down 405 bps YoY) due to lower full price participation in January. Furthermore, pre-operating expenses owing to significant store additions in the fag-end of the quarter led to EBITDA margins declining 480 bps YoY to 12.9%

- Reported higher other income worth Rs. 102 crore (Q4FY21: Rs. 72.4 crore), which includes dividend income from subsidiary, investment income and rental waivers. Subsequently, PAT grew 32% YoY to Rs. 74.9 crore

Key triggers for future price performance

- We pencil in 215 store additions between Westside and Zudio for FY23-24E

- Liquidity position remains robust with cash & investments worth Rs. 600+ crore that will enable it to tide over the current situation better than peers

- Zudio continues to be the growth engine for Trent. We expect revenues to grow at CAGR of 48% in FY22-24E

- In the long run, the company aims to grow its revenue at CAGR of 25%+

For details, click on the link below: Link to the report

Shares of Trent Limited was last trading in BSE at Rs. 1225.65 as compared to the previous close of Rs. 1226.35. The total number of shares traded during the day was 303949 in over 3266 trades.

The stock hit an intraday high of Rs. 1238.95 and intraday low of 1186.05. The net turnover during the day was Rs. 370145150.00.

Source : Equity Bulls

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Trent INE849A01020 Q4FY22 ResultUpdate ICICIDirect