Shares of Trent fell by 7% today following the release of its Q2 FY25 financial results. The decline in the stock price comes after the company reported a nearly 15% quarter-over-quarter (QoQ) drop in net profit, despite a strong year-over-year (YoY) increase. The QoQ decrease in profit, coupled with EBITDA figures falling short of estimates, has raised concerns among investors, leading to a sell-off.
Financial Highlights
- Revenue: Trent’s revenue from operations for Q2 FY25 reached ₹4,156.67 crore, marking a 39.3% YoY increase from ₹2,982.42 crore in Q2 FY24. However, on a QoQ basis, revenue showed a modest growth of only 1.3% from ₹4,104.44 crore in Q1 FY25.
- Profit Before Tax (PBT): The company reported a PBT of ₹466.81 crore, reflecting a significant 48.5% YoY rise from ₹314.32 crore in Q2 FY24. However, PBT saw a decrease of 6.9% QoQ from ₹501.39 crore in Q1 FY25.
- Net Profit (PAT): Trent’s net profit for Q2 FY25 stood at ₹335.06 crore, showing a 46.9% YoY increase from ₹228.06 crore in Q2 FY24. On the other hand, net profit declined by 14.4% QoQ from ₹391.21 crore in the previous quarter.
- EBITDA: Trent reported an EBITDA of ₹643 crore for Q2 FY25, which came in below analyst estimates of ₹675 crore.
- EBITDA Margin: The Q2 EBITDA margin stood at 15.47%, slightly below the estimated 15.7%.
Despite the impressive YoY growth in both revenue and profit, the QoQ drop in profitability, along with EBITDA figures missing estimates, has led to investor caution and a subsequent decline in Trent’s stock price.
