Trent (TRENT) Q4 00/01 earnings summary

Executive summary

• Total income rose 12.75% to Rs.66.13 crore; retail sales grew 24% despite sluggish economic conditions and delayed store openings.

• Net profit was Rs.10.17 crore after a Rs.5 crore provision for long-term investment diminution, down 20% YoY; profit before that provision rose 20% to Rs.14.98 crore.

Financial highlights

• Total income was Rs.66.13 crore vs Rs.58.68 crore; income from operations was Rs.48.99 crore vs Rs.49.54 crore, while other income increased to Rs.17.14 crore from Rs.9.14 crore.

• PBT before investment diminution was Rs.14.995 crore; reported net profit, including prior-year tax adjustment, was Rs.10.17 crore vs Rs.12.48 crore.

• Revenue from retail operations increased 24%; overall retail sales growth was achieved while pricing was maintained at prior-year levels.

Outlook and guidance

• Planned openings in Kolkata and Delhi, plus a second Delhi store in Q3, were expected to increase trading floor space by 75%; one additional Mumbai store was signed.

• Expansion into western and northern India was planned through 100 self-service grocery stores, including food and non-food items.

• Organised retail in India was expected to grow 20% annually; improved retail performance was expected to offset weaker treasury returns.