Shares of Trent surged 8 per cent intra-day to Rs 427 on the BSE on Thursday, in an otherwise weak market, after the company reported a strong set of June quarter numbers for FY20 (Q1FY20). The company logged a 51 per cent rise in the standalone net profit at Rs 58 crore in the recently concluded quarter on strong revenue growth. The Tata Group company, engaged in retailing business, had a profit of Rs 38 crore in year ago quarter.
Revenue from operations for quarter under review rose 30 per cent YoY to Rs 767 crore, as against a revenue of Rs 591 crore clocked in the corresponding quarter of the previous fiscal. EBITDA (earnings before interest, tax, depreciation and amortization) margin improved to 21.4 per cent from 12 per cent in previous year quarter.
"Sales of Westside format for the reporting quarter was higher by 21 per cent (12 per cent like to like) as compared to Q1FY19," Trent said uin its statement.
On consolidated basis, the company’s net profit remained flat at Rs 363 crore in Q1FY20, while revenue grew 30 per cent at Rs 800 crore over the previous year quarter.
On June 18,the Board had approved raising up to Rs 1,550 crore through a mix of issue of shares to its promoter Tata Sons on a preferential basis, and other options to fund its expansion.
The company has been witnessing positive traction for its lifestyle retail concepts and consequently pursuing a substantially accelerated growth programme across the Westside, Zudio and Star formats. Given this, the fund raising proposal was approved by the Board to facilitate Trent's funding requirements for the growth plans.
At 01:24 pm, Trent was up 6 per cent at Rs 422 on the BSE, as compared to a 1.2 per cent decline in the S&P BSE Sensex. A combined 5,74,553 shares have changed hands on the counter on the BSE and NSE so far. The stock hit an all-time high of Rs 465 on July 2, 2019.