Trent

This Tata group company posted a better set of numbers for Q3FY16. Its net sales rose 11% (YoY) at Rs.374 crore. Costs rose 9% and advertising rose 42%; it is 5% of the total costs. EBITDA for the quarter was up 31% at Rs.34 crore while margins rose from 7.7% to 9.09%. Finance cost for the quarter was up four times, from Rs.2 crore to Rs.8 crore. Net profit was at Rs.31 crore, up by a very healthy 94%.

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% but it has come up from 28.60% as at 30th June 2012, held by the Tata group. Institution holding is 36.26%. 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%.

The stock was up recently on news that it has tied up with Future Group for distribution. The unconfirmed news is that under the deal, Future Consumer Enterprise may sell its private brands in Star Bazaar outlets.