TRENT LTD Announces Quarterly Results (3QFY20); Net Profit Up 38.4%

Fri, 7 Feb

TRENT LTD has announced its results for the quarter ended December 2019. Here is a detailed performance review of the same:

TRENT LTD Quarterly Financials

No. of Mths Qtr. Ending		3 Dec-18*	3 Sep-19*	3 Dec-19*	QoQ Change	YoY Change
Net Sales	Rs m	6,565	8,180	8,697	6.3%	32.5%
Other income	Rs m	94	433	382	-11.6%	306.0%
Turnover	Rs m	6,659	8,613	9,079	5.4%	36.3%
Expenses	Rs m	5,839	6,852	6,962	1.6%	19.2%
Gross profit	Rs m	726	1,328	1,735	30.7%	139.0%
Depreciation	Rs m	116	585	579	-1.0%	400.3%
Interest	Rs m	88	598	593	-0.9%	573.3%
Profit before tax	Rs m	616	578	946	63.8%	53.5%
Tax	Rs m	214	195	389	99.4%	81.9%
Profit after tax	Rs m	403	383	557	45.6%	38.4%
Gross profit margin	%	11.1	16.2	20.0
Effective tax rate	%	34.7	33.7	41.1
Net profit margin	%	6.0	4.4	6.1

Year-on-Year Performance:

• The company's operating income during the quarter grew 32.5% on a year-on-year (YoY) basis. The expenses were up by 19.2% YoY during the same period.
• The company's operating profit increased by 139.0% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 20.0% in 3QFY20 as against 11.1% in 3QFY19.
• Depreciation charges increased by 400.3% and finance costs increased by 573.3% YoY, respectively.
• Other income increased by 306.0% YoY during the quarter.
• Net profit for the quarter increased by 38.4% YoY. Net profit margins during the quarter increased from 6.0% in 3QFY19 to 6.1% in 3QFY20.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 6.3% on a quarter-on-quarter (QoQ) basis. The expenses were up by 1.6% QoQ during the same period.
• The company's operating profit increased by 30.7% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 20.0% in 3QFY20 as against 16.2% in 2QFY19.
• Net profit for the quarter increased by 45.6% QoQ, while net profit margins increased from 4.4% in 2QFY19 to 6.1% in 3QFY20.

To see how TRENT LTD has performed over the last eight quarters,please visit here.

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TRENT LTD Share Price Performance

Over the last one year,TRENT LTD share price has moved up from Rs 354.4 to Rs 632.8, registering a Gain of Rs 278.5 or around 78.6%.

Overall, the S&P BSE SENSEX is up 11.4% over the year.

Current Valuations

At the current price of Rs 632.8, the price to earnings (P/E) ratio of TRENT LTD stands at 125.2 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 12.8 times.