Motilal Oswal Focused Fund bought 461912 shares of Dream in the month of Oct 2023…

Moderator may delete this post if thinks it doesn’t add any value…

Standalone Results:

• Standalone revenues were at Rs. 3,063 Crore, a substantial 59% increase compared to the same quarter in the previous year.
• Profit Before Tax (PBT) for this quarter was Rs. 375 Crore, reflecting a significant growth of 54%.
• Over the past few years, there has been a Compound Annual Growth Rate (CAGR) of 37% for revenues and 60% for PBT, which is a strong indicator of the company’s growth trajectory.
• The Star brand’s revenues were up 30% in comparison to the previous year, with a CAGR of 20% since Q2FY20.

Trent Limited’s strategic decisions and operational efficiency have contributed to revenue growth, even in challenging market conditions. They have been focusing on expanding their store network and maintaining consistent gross margins. The Operating EBIT margin for this quarter stood at 10.8%, up from 9.7% in the same period last year, which is a positive sign. The company’s performance and growth trends support their plans for further expansion.

As of September 30, 2023, Trent Limited’s portfolio included 223 Westside stores, 411 Zudio stores, and 27 stores across other lifestyle concepts. In this quarter, they added 6 Westside and 27 Zudio stores in 19 different cities.

Their fashion concepts have seen strong Like-For-Like (LFL) growth, with a focus on offering consistent value and a unique product range to customers. Emerging categories like beauty and personal care, innerwear, and footwear have also gained popularity and now contribute over 19% of the company’s standalone revenues.

Consolidated Results:

• Consolidated revenues, which don’t include Trent Hypermarket business revenues, reached Rs. 3,164 Crore, marking a 52% growth compared to the same quarter in the previous year.
• The PBT for the consolidated results was Rs. 314 Crore, reflecting a remarkable 129% increase.

We need to know from which are key states it generates revenue from ?

Mas financial services ltd give 20-25% guidances for next 5 years…

@Venky_Thiriveedhi
nice explanation,

Let me give my take so what happiness is my understanding is the real cash received is in the beginning and the end of the project and in between is all revenue recognition or very small payments.

Like i get 20% as advance now as and when I complete a %of project I am supposed to recognize revenue but I have a understanding that in reality you actually dont get a lot of money in between.

and the best part is in the end till the time I dont get the payment I dont deliver the product, just think about this way that the entire movie gets delayed or is put on hold so it creates a risk for the entire small ecosystem, in this case both parties always try to come up with best solution which benefits both like in ayalaan movie phantom has the distributing rights. (so the possibility of receivables being downsized is also low)

Another thing is suppose I can recognize revenue at 20% completion of a project but by the quatre end I could only do 18% then in this case I am supposed to recognize revenue in next quarter, so by next quarte If I complete 40% I get to recognize entire thing.

another possibility to highlight is since % of work completed is subjective phantom might say I have done 20% of work and recognize revenue but client might not agree and pay in this case the entire thing becomes unpaid revenue but this effect should normalize in the subsequent quatre

BASILIC

In phantom case you work in preproduction so what %of work is done is itself a subjective matter for the company hence the revenue recognition is a bit tricky but in basilic case who work in post production has 15cr of receivable and 15cr of other asset on 53cr balance sheet 56%

PHANTOM

In phantom case 78cr of balance sheet out of 96cr which is 80% is in other current asset, receivable, inventory this is because the delay of ayalaan movie if I adjust that then their receivable+ inventory are just 40% of balance sheet

This 30cr of other current asset and 18cr of inventory will be recognized as revenue (please correct me if I am wrong here) once ayaalan movie releases (30cr of other current asset) and millstone/product is delivered (18cr inventory) so 49cr is what we are taking about.

Of course the balance sheet has been deteriorated + ayalaan successful/timely release is must, so we have to monitor things closely, expecting H2 to be better.

Basilic does not show this berceuse they work on small projects(post production) in phantom case they take like 6motnhs to 9months for a particular project (pre production)

Disc- I would exit this stock if I get to know about any significant developments without a intimating plz invest at your own risk, invested