Tesco profit drops 6% in FY14; pins hopes on India for revival

Britain's supermarket giant Tesco has recorded a major drop in profits for the last fiscal, but has pinned its hopes on India for a revival of fortunes.
Tesco posted 6 per cent fall in group trading profit to 3.3 billion pounds in the year to February 22.
In the UK, profits fell 3.6 per cent to 2.2 billion pounds and sales dropped 1.4 per cent.
"Our results today reflect the challenges we face in a trading environment which is changing more rapidly than ever before. We are determined to lead the industry in this period of change," said Tesco chief executive Philip Clarke.

"We have completed our exit from the US and established partnerships with CRE in China and Tata in India which provide continued access to two of the world's most exciting markets, consistent with a sustainable level of future investment," he added.
Tesco had finalised a deal to become the first foreign supermarket to enter India's 330-billion pound multi-brand retail sector last month.

The retailer has agreed a joint venture with Trent Hypermarket Limited (THL), a unit of Tata Group, which runs the country's Star Bazaar chain.
Tesco plans to invest about 85 million pound in the 50-50 deal, following Indian government's approval.

However, the grocer has been battling problems at home and abroad. In the UK it faces stiff competition from rapidly growing smaller rivals including Aldi, Lidl and Waitrose while in Europe the Eurozone crisis continues to impact consumer spending.
Tesco also revealed a one-off charge of 801 million pound mainly relating to a write-down of assets in Europe, as well as a 540 million pound impairment relating to its Chinese business.
"During the year, we have maintained our focus on cash and capital discipline. We have significantly reduced our new investment in Europe, focusing the majority of our overseas capital on targeted, high-returning investments in Korea, Malaysia and Thailand," Clarke said.