Trent (TRENT) Q4 03/04 earnings summary

Executive summary

• FY04 total income rose 38.5% to Rs.166.39 crore; profit after tax increased 74% to Rs.17.11 crore. Retailing grew strongly, supported by five store openings.

• Retail operations delivered 41% growth and a 210% increase in PBT; treasury income also rose, but was expected to fall significantly in FY05.

Financial highlights

• Total income Rs.166.39 crore vs Rs.120.10 crore; PBT before exceptional items Rs.21.18 crore vs Rs.14.45 crore.

• Profit after tax Rs.17.11 crore vs Rs.9.85 crore; net profit Rs.20.18 crore includes Rs.0.09 crore excess prior-year tax provision, compared with Rs.7.04 crore in FY03.

• Exceptional items were Rs.0.70 crore vs Rs.2.40 crore; current and deferred tax provision totaled Rs.3.37 crore.

• Operating income Rs.155.13 crore; other income Rs.11.26 crore.

Outlook and guidance

• Plan to open five additional Westside stores in FY05, reinforcing presence in Mumbai, Bangalore and Delhi.

• First food-retailing unit planned for Ahmedabad in Q3 FY05, supported by a new IT system designed for unit growth.

• Treasury operations expected to be significantly lower in FY05 as income-fund yields and equity-market appreciation weaken.