Trent shares soared 15% today post Q3 results. Here's why

Shares of Trent Ltd rallied 15 per cent in Thursday's trade after the Tata group firm reported better-than-expected December quarter earnings. 

The stock climbed 15 per cent to hit a high of Rs 3,489.65 on BSE. The retailer reported a 124 per cent YoY rise in net profit for the December quarter at Rs 374.36 crore compared with Rs 167 crore in the same quarter last year. Revenue for the quarter was up 50.50 per cent to Rs 3,466.62 crore compared with Rs 2,303.38 crore in the corresponding quarter last year.

Chairman Noel N Tata said: "Our lifestyle offerings across concepts, categories and channels witnessed strong momentum in Q3FY24. The growing scale of our operations distinctly enables us to realize greater operating synergies. We continue to see growing relevance for our offerings, resilience in our business model choices and attractiveness of our differentiated platform."

Noel said his company will continue to expand and deepen its store presence. 

"We believe that our strategic differentiators will continue to provide us encouraging tailwinds. We have applied our playbook to the Star business and are witnessing strong customer traction, instilling a growing conviction to build out this growth engine in the food and grocery space. We are confident that this business is also well poised to shift gears and deliver substantial value to customers and shareholders going forward," he said.

Trent said its operating EBIT margin for Q3FY24 is 13 per cent against 8.5 per cent in the year-ago quarter. Trent had 227 Westside, 460 Zudio and 28 stores across lifestyle concepts. 

During the quarter, it added 5 Westside and 50 Zudio stores across 36 cities including 13 new cities.

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