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Trent Q1 PAT spurts to Rs 131.51 cr

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Capital Market
Last Updated : Aug 12 2022 | 12:04 PM IST

The Tata Group retail firm reported a consolidated net profit of Rs 130.51 crore in Q1 FY23 as against a net loss of Rs 126.59 crore recorded in Q1 FY22.

The company reported revenue from operations of Rs 1,803.15 crore in the first quarter, steeply higher than Rs 491.99 crore posted in the corresponding quarter previous year.

Trent posted a profit before tax of Rs 146.71 crore in Q1 FY23 from a pre tax loss of Rs 163.72 crore recorded in the same period a year ago.

The company said that its Star business with tight footprint stores, sharp pricing and focus on fresh & own brands offerings is witnessing improved customer traction with growing sales densities. Given the increasingly positive economics at store level, we are optimistic that we can have a differentiated & scalable model to pursue. Consequently, we see the possibility of Star becoming a key and additional growth engine in our portfolio going forward, it added.

The Tata Group company said that its customers continue to seek convenience through digital access even as stores have rebounded strongly. The firm's online revenues through Westside.com, Tatacliq and Tata Neu contributed approximately 6% of Westside revenues, registering a 129% growth in Q1 FY23 over the corresponding quarter.

Speaking on the performance, Noel N Tata, chairman of Trent said, Our fashion concepts displayed strong growth momentum in Q1FY23. We have been a company that makes strategic bets/ business model choices even if it involves standing away from the predominant & proximate market practices of the time. Completely own branded offerings, entirely direct-to-consumer reach, not discounting in season and not advertising are all cases in point. During the pandemic, the worst of which is behind us, we doubled down on network growth - the bet was that consumer sentiments would rebound strongly for stores once the pandemic fades. This bet in many ways is paying off and is seen in the contribution of new stores & added omnichannel reach to our growth.

As mentioned earlier, I have no doubt that we are in the initial laps of our growth as we continue to expand our reach with vigour and reinforce our lifestyle offerings across concepts, categories and channels. The growing acceptance of our brands demonstrates the attractiveness of our platform and the tremendous potential to address opportunities that lie ahead.

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Trent operates Westside, one of India's leading chains of fashion retail stores, Zudio, which is a one shop destination to get fashion at great value, Trent Hypermarket, which operates in the competitive food, grocery and daily needs segment under the Star banner, and Landmark Stores, a family entertainment format store.

Shares of Trent were up 0.77% to Rs 1,350 on the BSE.

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First Published: Aug 12 2022 | 11:43 AM IST

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