Trent Q2 preview: Profit, revenue to inch higher aided by new store additions

Tata group's retail arm Trent is scheduled to report its Q2 earnings tomorrow (November 7, 2024). This is the company's first quarterly report after its inclusion in the bluechip Nifty50 index on September 30, 2024. The stock replaced Divi's Laboratories.

The company's inclusion in the Nifty50 index was expected to result in a net inflow of around $495 million.

Zee Business research expects the company to post decent September quarter results, with standalone profit after tax (PAT) seen climbing 59 per cent year-on-year YoY) to Rs 460 crore as against Rs 290 crore reported in the same quarter last year.

The analysts expect growth at the company to be aided by new stores.

Revenue from operations at the retail entity also is expected to grow 56 per cent from Rs 2,891 crore in the September quarter of the previous year to Rs 4,512 crore. 

On the operational front too, the EBITDA or Earnings Before Interest, Taxes, Depreciation, and Amortization is estimated to rise by 71 per cent on-year to Rs 788 crore, in comparison to Rs 461 crore reported in the same period last year. Furthermore, on increased EBITDA, margin is also seen to climb 1.6 per cent or 160 basis points to 17.5 per cent. Margins stood at 15.9 per cent in the same quarter last year.

Trent's stock performance 

The stock since its inclusion in the Nifty 50 index has shed over 11 per cent taking today's last trading price of as much as Rs 6,942. Nonetheless, in the last one year, the stock has gained 216 per cent.