Trent Q4FY25 results: Net profit falls 54.8%, revenue rises 27.9%

Business Standard

29-04-2025

Fashion and lifestyle retailer Trent saw its consolidated net profit fall 54.8 per cent in the fourth quarter (January-March) of financial year 2024-25 (Q4FY25) compared to the same period of FY24 even as it included ₹576 crore as gains on reassessment of estimates related to lease terms under IND AS 116. IND AS 116 is the Indian Accounting Standard for Leases, replacing AS 19.
Its revenue from operations rose 27.9 per cent to ₹4,216.9 crore in Q4 compared to the same period last year and its like-for-like growth was in mid-single digit in the quarter on a standalone basis. In FY25, like-for like growth was in double digit on a standalone basis.
Trent said its consolidated revenues do not include revenues of the Trent Hypermarket business. However, the reported results include the proportionate share of profitability of this venture and is accounted based on the equity method. Its net profit on a consolidated basis stood at ₹318.2 crore in the quarter.
Its profit before interest, tax and depreciation stood at ₹725.3 crore, down 37.7 per cent, in Q4. The company said that it operates over 1,000 large-box fashion stores.
Trent has a footprint of over 13 million sq ft (msf) across its fashion brands. In its release, it called out emerging categories, including beauty & personal care, innerwear and footwear, that continued to gain traction with customers. These emerging categories contribute to over 20 per cent of its revenues.
'We continue to build on our presence in metro/Tier-I cities. The agenda has been to drive material reach and share of revenues across key markets. Further, we are evolving the quality of our store portfolio, and we are consciously increasing the density of our presence in such markets,' the company said in its earnings release.
It also said that given the business model choices and the intent to drive share of revenue in key markets, the company believes it would be appropriate to pursue revenue growth across comparative micro markets vis-à-vis just the performance of comparative stores. It said that the comparative micro market growth in FY25 was strong.
In FY24, its online revenues grew by 43 per cent and contributed to over 6 per cent of Westside revenues.
Noel N Tata, chairman at Trent, said in the release: 'In FY25, we built on the agenda of strongly growing our reach and becoming more accessible to our customers. Given the seasonality of the business, nature of the real estate market, and our approach to inventory management, the full-year performance is more representative with respect to revenues, operating profitability, and network expansion vis-à-vis any individual quarter.'
Tata added, 'Our fashion portfolio continues to be differentiated by disciplines and choices. In FY25, Zudio revenues exceeded a billion dollars. Both Westside and Zudio now have the scale and reach, and enjoy significant consumer awareness and love. The Indian consumer has evolved rapidly in the recent years, and is seeking an aspirational product proposition, attractive pricing and, importantly, ready accessibility.'
He said that the company believes in building density of its presence in key markets, allowing Trent proximity and the ability to service its customers. The market opportunity associated with building brands and a pure play direct-to-customer business remains immense, he added.
'In our Star business, we are applying Trent's playbook and the contribution of our own brands is now trending over 70 per cent of revenues. The opportunity in the food space for the Star proposition is exciting while being competitive. We remain convinced that this business is well poised to deliver much consumer value and growth in the years ahead,' Tata said.