Trent, a prominent retail entity under the Tata Group umbrella, has reported a significant 55% drop in net profit for the fourth quarter of FY25. Despite the downturn in profits, the company experienced robust growth in both revenue and earnings before interest, tax, depreciation, and amortization (EBITDA) during this period, showcasing a resilient business model in the face of challenges.

Q4 FY25 Financial Highlights

In Q4 FY25, Trent’s net profit reached Rs 318 crore, a sharp decline from Rs 704 crore in the same quarter of the previous year. However, it’s essential to note that the previous year’s figures were bolstered by a one-time exceptional gain of Rs 543 crore, which translated to a post-tax benefit of Rs 406 crore. Excluding this windfall, the earnings per share (EPS) for FY24 would have been approximately Rs 28.95.

• Net Profit: Rs 318 crore in Q4 FY25 (down from Rs 704 crore)
• Exceptional Gain in Q4 FY24: Rs 543 crore (post-tax Rs 406 crore)

Impressive Growth in EBITDA

Trent’s EBITDA saw a remarkable increase of nearly 39%, climbing to Rs 652 crore in Q4 FY25, compared to Rs 470 crore a year prior. While this growth was impressive, it slightly missed the market expectations of Rs 670 crore. The EBITDA margin improved to 15.5%, marking a rise from 14.2% the previous year, reflecting a solid expansion of 130 basis points.

• EBITDA: Rs 652 crore (up 39%)
• EBITDA Margin: 15.5% (up from 14.2%)

Revenue and Consolidated Income Growth

The total consolidated income, which includes other revenue streams, surged by 27.19% to Rs 4,291.28 crore. Trent also announced a dividend of Rs 5 per share, signaling a commitment to returning value to shareholders.

Strategic Growth and Expansion

Noel Tata, Trent’s chairman, emphasized the company’s focus on enhancing accessibility and expanding its reach in FY25. He noted that the seasonal nature of the business and the dynamics of the real estate market make the annual performance a better indicator of the company’s operational success than any single quarter.

• Store Expansion: Trent has successfully opened 40 Westside stores and 244 Zudio stores, while also merging or closing 24 outlets from both brands as part of a strategic consolidation plan.
• Total Store Count: As of March 31, Trent operates 248 Westside stores, 765 Zudio stores (including two in the UAE), and 30 other lifestyle outlets.

Geographic Reach

In FY25, Trent expanded into 64 new cities and towns, focusing particularly on Tier-2 and Tier-3 regions. This brought the total number of cities served to 242 across India, underscoring the company’s commitment to broadening its market footprint.

In summary, while Trent’s net profits may have taken a hit, the robust growth in revenue and strategic initiatives indicate a positive trajectory for the company moving forward.