Trent Q3 net profit rises two-fold to Rs 370.6 crore

Tata Group retail firm Trent Ltd on Wednesday reported a two-fold rise in consolidated net profit to Rs 370.64 crore for the third quarter ended December 2023, helped by strong momentum in sales and improved margins.

The company had posted a consolidated net profit of Rs 154.81 crore a year ago, Trent Ltd said in a regulatory filing.

Trent Ltd operates retail stores under the brand name Westside, Zudio and Star.

Its consolidated revenue from operations surged 50.5 per cent to Rs 3,466.62 crore during the quarter under review. It was Rs 2,303.38 crore in the year-ago period, it added.

Trent's total expenses rose 41.64 per cent in the December quarter to Rs 3,101.44 crore.

"Across formats, we continued to register consistent growth, serving as a reaffirmation of our strategic choices. Our operating discipline, coupled with a focus on the speed of execution, supported our expansion agenda. Change in the revenue profile across formats remains aligned with our strategic objectives and plans," said an earning statement from Trent.

The total consolidated income rose 50 per cent to Rs 3,546.95 crore in the December 2023 quarter.

Its Chairman Noel N Tata said: "Our lifestyle offerings across concepts, categories and channels witnessed strong momentum in Q3 FY24. The growing scale of our operations distinctly enables us to realise greater operating synergies".

The gross margin profile of Westside and Zudio continue to remain consistent with earlier trends.

"Overall, Operating EBIT margin for Q3 FY24 is 13 per cent (8.5 per cent for Q3 FY23). Performance of the business and the growth momentum encourages us to continue with our expansion plans," the company said.

In Q3 FY24, Trent's fashion concepts registered encouraging LFL growth of over 10 per cent vis-a-vis Q3 FY23.

Its emerging categories, including beauty and personal care, innerwear and footwear, continued to gain traction and contributed to over 19 per cent of its standalone revenue, which was Rs 3,521 crore during the quarter.

"Our online revenues continue to grow profitably through Westside.Com and other Tata group platforms and currently contribute over 5 per cent of Westside revenues," it said.

During the quarter, Trent added 5 Westside and 50 Zudio stores across 36 cities, including 13 new cities.

As of December 31, 2023, Trent's portfolio included 227 Westside, 460 Zudio and 28 stores across other lifestyle concepts.

"The Star business, consisting of 67 stores, continued to witness improved customer traction with growing sales densities. Over the last few years, several initiatives undertaken to strengthen the operating performance are yielding encouraging results," it said.

Over the outlook, Tata said Trent will continue to expand and deepen its store presence.

"We believe that our strategic differentiators will continue to provide us encouraging tailwinds. We have applied our playbook to the Star business and are witnessing strong customer traction, instilling a growing conviction to build out this growth engine in the food and grocery space," Tata said.

Shares of Trent Ltd on Wednesday were trading at Rs 3,489.65 on BSE, up 15 per cent from the previous close.