Trent (TRENT) Q4 02/03 earnings summary

Executive summary

• FY 2002-03 total income rose 33% to Rs.120.10 crore; retail sales increased 45% to Rs.104.57 crore, while net profit reached Rs.16.89 crore, up 65%.

• Profit growth included a Rs.7.05 crore prior-year tax provision write-back and followed a Rs.2.40 crore provision for diminution in long-term investments.

Financial highlights

• Standalone total income was Rs.120.10 crore versus Rs.90.60 crore; profit before tax and investment diminution was Rs.14.45 crore versus Rs.13.04 crore.

• Net profit was Rs.16.89 crore versus Rs.10.22 crore; the Rs.7.05 crore excess tax provision write-back materially contributed to the result.

• Retail sales reached Rs.104.57 crore, up 45%; income from current investments and non-trade activity was Rs.7.69 crore versus Rs.9.63 crore.

• Consolidated net profit after minority interest was Rs.15.99 crore; consolidated EPS was Rs.12.19 versus Rs.7.58.

Outlook and guidance

• Expansion plans included four further stores and five signed properties, with openings planned through the end of 2004; two post-year-end stores opened in Mumbai and Ahmedabad.

• Planned additions were expected to increase retail space by 34,000 sq. ft. from 184,500 sq. ft.; Noida and North Mumbai were among planned locations.

• Food retail launch was delayed by location issues; supply-chain work progressed and the entry strategy was finalized.

• The outlook was cautiously optimistic, with business plans based on an average economic scenario and potential upside from a good monsoon and reasonable inflation.