Mumbai, Jan 6 (IANS) Shares of Tata Group retailer Trent Limited plunged sharply on Tuesday, rattling investors despite the company reporting double-digit revenue growth for the December quarter.

The stock fell as much as 8.3 per cent to Rs 4,060.65 on the BSE, wiping out nearly Rs 13,000 crore in market capitalisation.

The sharp sell-off came even as Trent posted a 17 per cent year-on-year (YoY) rise in standalone revenue to Rs 5,220 crore in the October–December quarter.

However, investors focused more on signs of slowing growth rather than the headline revenue number.

Analysts pointed to weakening same-store sales and a continued decline in revenue per square foot, which raised concerns about falling productivity at the retailer’s stores.

Trent, which operates popular brands such as Zudio and Westside, has been expanding aggressively, but the latest performance suggested that the pace of growth may be losing momentum.

During the December quarter, the company added 48 net new Zudio stores and 17 net new Westside stores. This took the total number of Zudio outlets to 854 and Westside stores to 278.

By 1:15 p.m., Trent shares were trading at Rs 4,092.90, down Rs 336.90 or 7.61 per cent from the previous close.

The stock has been under pressure for some time now. Over the past five trading sessions, it has fallen 3.51 per cent, while over the last six months it has declined sharply by about 25.5 per cent.

On a year-to-date (YTD) basis, the stock is down 4.1 per cent.

The recent fall has deepened the longer-term pain for investors, with Trent shares now down over 41 per cent over the past one year.

The Mumbai-based retail company was founded in 1998 and operates fashion and lifestyle formats.

Apart from Westside and Zudio, the Tata Group company runs popular brand like Zara in joint venture.

–IANS

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