Retail Assignment

Group 5

Balance Sheet Analysis of Trent

TATA Group

Presented by –

Pranjal Ambre 35

Palak Thakker 88

Jehan Wadiawala 96
 Analysis of Statements
 The revenue from operations rose to 2630.24 crore that is by 21.91%, while profit for the year
rose by 8.9%
 The Gross Profit margin is 50.1% which was 52.2% last year
 The EBITDA rose to 37% which will help the in-servicing debt
 The cash generated from operation is 106.24 crore which had a drop due to rise in inventory
 Capital work in progress show that there will be a rise in the fixed assets and stores in near
future. This means they are having capital expenditure for expansion
 There is also plans to open new stores of Westside (40), Zudio (33), Star Bazar (20-25)
 Important Ratios
o The inventory turnover ratio in days in 4.57 days
o Interest coverage ratio is 7.30, this means they can pay their interest costs 7 times of
what they pay each year
 The annualized sale per square feet is 10225/- which rose by 2.4%, also the average ticket size
rose by 6% which is 2332/-
 The Shrinkage is now at 0.18%of sales which was 0.12%
 In long term liability this year they had to redeem 1000 Non-convertible Debenture of 10 lakhs
each with 7.84% and they raised new NCDs at 8.75% which has 10 lakhs face value and 3000
units
 Even in short term borrowing the commercial papers must be redeemed of 291.54 crore, the
long the NCDs are used for paying these short-term liabilities and to have capital work in
progress where new stores are in process and the expense is done to have new exclusive store
under the brand of “Utsa”
 In Other Current Financial Liabilities, the long-term liabilities are seen which are to redeem in
near future