Trent Q4 Results Review - Another Quarter Of Blockbuster Growth; Margins Remain Under Pressure: Systematix

BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Systematix Research Report.Trent Ltd. delivered a strong beat on the top line front, growing 75% YoY to Rs 20.8 billion, which is a sharp pick-up in three-year revenue compound annual growth rate to 42%. Growth came from a combination of strong like-for-like growth in Westside, aggressive store expansion in Zudio and strong traction in emerging categories like beauty and personal care, innerwear and footwear. However, margins corrected sharply on account of faster growth in the low-margin Zudio business and higher growth-oriented investments. Westside recorded 23% same-store-sales growth over Q4FY22. 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 46% YoY. Trent’s margins were below estimates with a sharp gross margin contraction of 833 bps YoY to 40.8% and Ebitda margin contracting 260 bps to 10.2% led by lower other expenses, with operating profit at Rs 2.12 billion versus 1.52 billion in Q4 FY22. Online channel continues to account for ~6% of Westside’s revenue. As of March 2023, the company had 214 Westside, 352 Zudio and 24 stores of Utsa and Landmark, with store openings falling marginally short of expectations..Click on the attachment to read the full report:.HUL, Tech Mahindra, Axis Bank, Wipro, LTIMindtree, Trent And More Q4 Results Reviews: HDFC Securities.DISCLAIMERThis report is authored by an external party. BQ Prime 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 BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Trent Q4 Results Review - Another Quarter Of Blockbuster Growth; Margins Remain Under Pressure: Systematix

Growth momentum set to sustain in the medium term with no slowdown signs yet.

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