TRENT LTD

Trent posted a good set of numbers for Q3FY17. On a 15% (YoY) jump in net sales at Rs.430 crore, the company posted a 14% rise in net profit at Rs.37 crore; QoQ, it was up 76%.

Costs were up 15% (YoY) and EBITDA came in at Rs.48 crore, up 41% with margins improving to 10.88% from 8.85%. Its interest costs have come down, both YoY as well as sequentially by 22% and 23% respectively.

Its 9MFY17 net profit of Rs.81 crore has already surpassed Fy16 net profit of Rs.78 crore. The company is equity heavy – Rs.33.23 and this subdues the EPS; annualized EPS is at Rs.3.25 (FV of Re.1).

Trent runs lifestyle chain Westside, Star Bazaar, a hypermarket chain, Landmark, a books and music chain, and Fashion Yatra, a complete family fashion store and Sisley, a premium clothing store. Promoter stake is low in the company at 32.61% wherein Tata Sons hold 27.74%. FIIs hold 26.98%. Azim Premji’s fund – PI Opportunity Fund holds 2.77% , down from 4.03% stake and Singapore-based investment management company Arisaig Partners has hiked its stake from 1.57% at end of Q4FY12 to 6.65% and now at 9.89%.