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Trent (NS:TREN) and Tata Motors Report Strong Q3 FY24 Results

7th February, 2024| By Business Desk
Tata Motors - Altroz
TATA Altroz | Credit: Wikimedia Commons
  • Trent Limited and Tata Motors reported strong financial results for Q3 FY24, surpassing market expectations.
  • Trent’s net profit surged to ₹374.6 crore, while revenue grew by approximately 50% year-on-year.
  • Trent attributed its success to consistent growth across various retail formats and strategic choices, expanding its footprint with new store additions.
  • Tata Motors recorded a consolidated net profit of ₹7,025.1 crore, marking significant growth compared to the previous year.
  • Tata Motors anticipates further improvement in performance in Q4 FY24, driven by seasonality, new product launches, and enhanced supplies at Jaguar Land Rover.

Trent Limited (NS:TREN) and Tata Motors have both announced robust financial results for the third quarter ended December, prompting significant increases in their respective share prices.

Trent, a subsidiary of the Tata Group, witnessed a surge in its stock following the release of its quarterly results. The company reported a net profit of ₹374.6 crore for the October-December period, marking a substantial increase from the ₹154.8 crore recorded in the same quarter the previous year. Additionally, Trent’s revenue for the quarter stood at ₹3,466.6 crore, representing a growth of approximately 50% compared to the previous year’s figure of ₹2,303.4 crore. Both the profit and revenue figures exceeded analysts’ expectations.

The company attributed its strong performance to consistent growth across various formats and strategic choices. Trent emphasized its commitment to operational discipline and speedy execution, which supported its expansion efforts during the quarter. Notably, Trent added 5 Westside and 50 Zudio stores across 36 cities, including 13 new cities, further expanding its retail footprint. As of December 31, 2023, Trent’s portfolio comprised 227 Westside, 460 Zudio, and 28 other lifestyle concept stores.

The positive financial results propelled Trent’s share price, which surged by 10% to hit the upper circuit at ₹3,338.50 on the day of the announcement.

Meanwhile, Tata Motors also reported impressive financial performance for the same quarter. The automaker’s stock witnessed a significant increase, reaching an all-time high of ₹942 per share, representing a gain of 7.18%. Tata Motors emerged as the top gainer on the Nifty50 index following the announcement of its better-than-expected results.

Tata Motors reported a consolidated net profit of ₹7,025.1 crore for the quarter, marking a substantial increase compared to the corresponding period a year ago. The company’s revenue also witnessed strong growth, reaching ₹1,09,799.2 crore, up by one-fourth year-on-year. The robust performance was driven by solid revenue growth in both the commercial vehicles and passenger vehicles segments, which increased by 19.2% and 10.6% respectively.

PB Balaji, Group Chief Financial Officer of Tata Motors, expressed satisfaction with the company’s performance, highlighting six consecutive quarters of consistent delivery. He emphasized Tata Motors’ confidence in sustaining its performance in the coming quarters and reiterated its commitment to deleveraging plans.

Looking ahead, Tata Motors anticipates further improvement in performance in the fourth quarter, driven by seasonality, new product launches, and enhanced supplies at its subsidiary, Jaguar Land Rover (JLR).

In conclusion, both Trent Limited and Tata Motors have reported strong financial results for the third quarter of FY24, exceeding market expectations and driving significant increases in their share prices. The companies’ focus on strategic initiatives, operational efficiency, and expansion efforts has contributed to their impressive performance, setting a positive outlook for future growth and profitability.