Trent Q3 Results Review: Systematix Maintains 'Hold' On The Stock, Lowers Target Price — Here's Why

Trent has accelerated its pace of store openings, as it targets a bigger share of the fast/ value-fashion pie through Westside and Zudio and also adding new formats like Utsa..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Systematix Report.Trent Ltd. delivered results in line with our expectations. Revenue/ Ebitda/ PAT growth stood at 36.9%/ 34.4%/ 36.6% YoY respectively. Revenue grew 36.9% on standalone basis to Rs 45.3 billion, which is a five-year revenue CAGR of 39%. Growth was led by high single digit like-for-like growth across fashion concepts, strong store expansion in Zudio (62 Zudio stores added, one store in Dubai, consolidated four stores in Q3) and Westside (14 Westside stores added, consolidated two stores in Q3) and traction in emerging categories like BPC, innerwear, and footwear (20% plus contribution). Gross margin declined 124 bps YoY to 44.7% while Ebitda margin declined 34 bps YoY to 18.5% due to change in format mix and higher store additions. On operating cost front, employee cost decreased 75 bps, rent expenses declined 4 bps and other operating expenses declined 13 bps. Star Bazaar continued to see increased traction and growing sales density post footprint tightening coupled with focus on fresh foods and own brands. Star Bazaar revenue grew 25% YoY, with a volume led same-store sales growth (10%). Operating performance improved, driven by staples fresh and general merchandise and own brand contribution increased to 74% from 69% in Q3 FY24. As of Dec end 2024, the company had 238 Westside, 635 Zudio and 34 stores across other lifestyle concepts..Click on the attachment to read the full report:.SBI, Trent, BSE, NCC, Star Cement, Gujarat Gas, Sonata, Somany, Lemon Tree & More Q3 Review: HDFC Securities .DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Trent Q3 Results Review: Systematix Maintains 'Hold' On The Stock, Lowers Target Price — Here's Why

Trent's growth momentum continues, but margin performance slips, says Systematix

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