Trent Q4 Results: Standalone Profit Beats Street, Consolidated PAT Sees 55% YoY Decline

Trent Ltd. has captured market attention with its latest financial disclosures. Reporting figures for the quarter ended March 2025, the Tata group company presented a mixed picture, highlighted by Standalone profit exceeding street expectations but a significant year-on-year drop in consolidated net profit. After the announcement, the company’s stock closed at ₹5,510, with an increase of 5.77%.

Q4 Performance Snapshot

Trent reported a Standalone Profit After Tax (PAT) of ₹354 crore for the fourth quarter, notably surpassing the Street estimates of ₹303 crore. This indicates a stronger standalone performance or specific profit calculation method relative to analyst consensus. However, the consolidated net profit attributable to the equity holders of the company saw a sharp 55% year-on-year decline, falling to ₹318 crore compared to ₹704 crore in the same period last year. On the revenue front, Trent posted ₹4,016 crore, which was slightly below the Street estimates of ₹4,131 crore. Despite falling short of revenue projections, the reported revenue figure rose 28% year-on-year. Sequentially, however, revenue saw a decline, indicating a moderation from the December quarter.

Dividend Announcement

In addition to the quarterly results, Trent announced that it will pay ₹5 per share as dividend.

Market Reaction

Leading up to the results announcement on 29 April 2025, Trent shares had shown positive movement, jumping over 2% earlier in the day. Following the announcement, shares saw a further boost, jumping over 4%.

Brokerage Expectations Pre-Results

Ahead of the official release, expectations for Trent's Q4 performance varied widely, particularly on profit after tax (PAT). Estimates ranged from a sharp year-on-year decline of 63% to a robust 35% growth, reflecting divergent views on the impact of a one-time exceptional base effect. Revenue forecasts, however, were broadly optimistic, with projections indicating a year-on-year increase of around 28%.

Share Price Context

Looking at longer-term performance, Trent's shares have delivered substantial returns, showing a 934.46% gain over the past 5 years. More recently, the stock was down 26.05% year-to-date and 29.47% over the last 6 months, but was up 21.09% over the past year as of 29 April 2025.

Trent's Q4 results present a complex picture for analysts. While exceeding analyst estimates for reported Standalone PAT suggests underlying operational strength relative to expectations, the sharp fall in consolidated PAT attributable to equity holders year-on-year warrants closer examination. The revenue growth remains robust on an annual basis, aligning with expectations of sector expansion, though sequential trends show moderation. The dividend announcement and positive immediate market reaction underscore investor confidence, potentially focusing more on the beat against PAT estimates and the strong underlying revenue growth trajectory, despite the consolidated profit dip.

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