Trent (TRENT) Q4 98/99 earnings summary

Executive summary

• 9M results to Mar. 31, 1999 included the erstwhile retail business from its July 1, 1998 amalgamation; figures are not comparable with the prior 15-month period.

• Operations shifted toward Westside retailing after the cosmetics trademark and related asset transfers to Hindustan Lever; management planned further store openings in India.

Financial highlights

• Total income was Rs. 29.89 crore, comprising Rs. 19.73 crore of income from operations and Rs. 10.16 crore of other income.

• PBT was Rs. 12.33 crore; profit for the period after tax and a Rs. 2.66 crore net prior-year tax adjustment was Rs. 11.84 crore.

• Net sales were Rs. 7.94 crore; income from operations also included Rs. 11.78 crore of interest from short-term loans and advances.

• Prior 15-month results included Rs. 97.97 crore of extraordinary income from investment and Deonar undertaking sales; comparison with the 9M period is not meaningful.

Outlook and guidance

• Management was pursuing additional Westside locations across India, with some sites identified for opening in FY 1999-2000.

• Y2K remediation was expected to finish by Nov. 30, 1999; main operating software was Y2K- and Euro-compliant, main hardware was Y2K-compliant, and disruption risk was judged minimal.