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Trent Limited, a retail company owned by the Tata Group, reported a significant increase in its consolidated net profit for the quarter ending September 30, 2024. The company saw a 47% jump in profits compared to the same period last year, reaching Rs 228 crore. This positive news, however, was overshadowed by a simultaneous decline in Trent's share price on the Bombay Stock Exchange (BSE). Despite the strong profit figures, the company's shares fell over 7%, trading at Rs 6,462.45 apiece at 3:20 PM on November 7. This dip was attributed to a 14% decrease in the company's net profit on a sequential basis, meaning a comparison between the current quarter's earnings and the previous quarter's earnings.
The company's statement highlighted the positive aspects of its financial performance. Trent indicated that the revenue profile across its various retail concepts remained aligned with its strategic goals. The gross margin for Westside and Zudio, two prominent brands under the Trent umbrella, stayed consistent. Overall, the operating EBIT (Earnings Before Interest and Taxes) margin for the second quarter of fiscal year 2025 was reported to be 10.8%, a slight improvement from the 9.8% recorded in the same period of the previous fiscal year. Trent also emphasized its expansion efforts, noting that it now operates a sizable portfolio of over 800 large-format fashion stores across 184 cities in India.
Noel N Tata, Chairman of Trent Limited, acknowledged the challenging market conditions. He stated that consumer sentiment remained muted, which, coupled with seasonal factors, had presented headwinds for retail businesses. However, he praised his team for achieving strong results across all brands, concepts, categories, and channels in the second quarter. Tata expressed optimism about the market opportunity associated with building brands and establishing a direct-to-customer business model. Trent's commitment to expansion and customer accessibility was further highlighted by its recent launch of the first international Zudio store in the United Arab Emirates (UAE) and the introduction of the Zudio Beauty concept in India.
Source: Good news for Noel Tata as Trent Ltd profit jumps to Rs…., revenue increased by….