Trent stock tumbles 9% on Q2 earnings, check details  

Shares of Tata Group firm Trent Ltd sinked over 9% in the afternoon session on Thursday after the firm reported Q2 earnings which fell short of estimates. Trent stock slipped 9.24% to a low of Rs 6,310 on BSE. Market cap of the firm fell to Rs 2.27 lakh crore. The multibagger stock is neither overbought nor oversold on charts as the relative strength index (RSI) of the stock stands at 33.6. Trent stock stands lower than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day but higher than the 150 day and 200 day moving averages. The stock has corrected nearly 19 per cent from its 52-week high at Rs 8,345.85, hit on October 14.

Net profit climbed 47% to Rs 335 crore in Q2 against Rs 228 crore in the corresponding quarter of the previous fiscal. Profit came below estimates of brokerages. Equirus Securities pegged net profit at Rs 497.4 crore, up 71.7 per cent YoY and 45.4 per cent QoQ.  Axis Securities expected profit at Rs 503 crore, up 73.5 per cent YoY and 46.9 per cent QoQ.

Revenue climbed 39% to Rs 4157 crore in Q2 against Rs 2982 crore in the corresponding quarter of the previous fiscal. Equirus Securities expected a revenue of Rs 4,542.9 crore, up 57.2 per cent YoY and 13.8 per cent QoQ. Axis Securities saw revenue at Rs 4,481 crore, up 55 per cent YoY and 12.2 per cent QoQ. 

Trent's EBITDA stood at Rs 643 crore, largely in-line with estimates of Rs 675 crore and EBITDA margins too, were mostly in-line with expectations of 15.7% at 15.5%. During the same quarter last year, Trent had reported margins of 15.3%.

Trent said it has a portfolio of 831 fashion stores with 43 stores opened during the quarter.

"We now operate with a significant portfolio of over 800 “large-box” fashion stores. In Q2 we continued to deepen and expand our store footprint across concepts, with presence now across 184 cities. As of 30th September, our store portfolio included 226 Westside, 577 Zudio and 28 stores across other lifestyle concepts. During the quarter, we opened 7 Westside and 34 Zudio stores (including 1 in Dubai) across 27 cities," said the firm in a communication to bourses.