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Trent: Good performance
The stock of retail heavyweight Trent has been on an upswing with the company’s shares rallying nearly 20 per cent over the last three weeks. The broader market movement with mid-cap indices rallying smartly over the past month has had a rub-off effect on Trent as well.
The company’s December quarter results were a mixed bag. While sales grew at a robust 26 per cent Y-o-Y to ₹656.5 crore, net profits grew by a weak 6.2 per cent to ₹40.3 crore. The EBITDA margin came below market expectations at 11.1 per cent for the third quarter of FY19. Margins were weaker as the company had to reportedly pass on the benefits of GST input tax credits to customers. The sales growth figure was expectedly healthy, given that the quarter is a festive period associated with increased purchases.
Continuing strong performance in the form of higher same-store-sales growth in its Westside outlets is a key revenue and margin driver for the company.
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