Trent Q1 results today. Zudio store additions to lift profit by 100%!

Trent Ltd, a Tata group firm, is expected to report 74-108 per cent surge in net profit on a 42-50 per cent jump in sales, led by expansion in Zudio and healthy store productivity. Margins of a majority of the fashion retailers were expected to be under pressure in Q1, due to lower than expected growth in sales. Trent could be the outlier in both sales and margin performance, analysts said.

PhillipCapital expects Trent to report 74 per cent year-on-year (YoY) rise in net profit at Rs 258.30 crore for the June quarter compared with Rs 148.30 crore in the same quarter last year. It sees revenue rising 47 per cent YoY to Rs 3,739.90 crore from Rs 2,536.40 crore YoY, led by retail expansion in Zudio and healthy store productivity levels.

Ebitda is seen rising 35 per cent YoY to Rs 493.70 crore bit Ebitda margin is seen contracting 122 basis points to 13.2 per cent from 14.4 per cent YoY, primarily driven by higher sales mix of Zudio and higher rent expense due to reassessment of lease liabilities. "We model 33 bps gross margin contraction YoY, 61 per cent increase in employee expense YoY and 49 per cent increase in other expense YoY," it said.

Antique Stock Broking sees  profit growing 108.80 per cent to Rs 309.60 crore on 45 per cent jump in sales at Rs 3,677.80 crore.

Sharekhan sees sees Trent to report a 42 per cent YoY rise in revenue, aided by strong same store sale growth, robust growth in Zudio brand, and incremental  contribution from new stores. "We expect Trent to be an outliner for yet another quarter, delivering 42 per cent YoY revenue growth, driven by store additions (largely of Zudio) and strong SSSG," it said.

.The brokerage expects Ebitda margin to stay largely flat YoY at 14.5 per cent. Adjusted Ebitda growth of 43 per cent along with higher other income and lower interest cost will aid in 93 per cent YoY PAT growth, it said.