Trent fell 1% to Rs 671.9 after the company posted a consolidated net loss of Rs 71.6 crore in Q2 September 2020 compared with a net profit of Rs 18.6 crore in Q2 September 2019.
Net sales declined 31.5% to to Rs 585.38 crore in Q2 September 2020 over Q2 September 2019. During the quarter, various restrictions continued to apply at the local level including store closure requirements during weekends, Trent said in a release after market hours yesterday, 5 November 2020.Trent's recorded a pre-tax loss of Rs 102.86 crore in Q2 September 2020 compared with pre-tax profit of Rs 38.40 crore registered in the same quarter last year. Trent received a tax rebate of Rs 24.29 crore in Q2 September 2020 as against total tax expense of Rs 21.12 crore in Q2 September 2019.
During the quarter, various restrictions continued to apply at the local level including store closure requirements during weekends. This impacted the quarterly performance. However, in recent weeks, all the company's stores are fully operational with local restrictions being increasingly withdrawn. The revenue trajectory continues to register strong recovery. Further improvement in consumer sentiment and traction in the recent weeks running upto Diwali is indeed encouraging, the company noted.
Commenting on the performance, Noel Tata, Chairman of Trent said, "We are witnessing encouraging recovery playing out across our concepts even as Covid related concerns continue. The improving consumer traction coupled with growing acceptance/ adoption of safety protocols by key stakeholders is welcome. We now expect the current festive season to be relatively positive. As the recovery rate of Covid cases continues to improve, we are cautiously optimistic on the outlook for accelerating recovery and return to profitability in the second half. Near term uncertainties notwithstanding, we are continuing focus on building out differentiated brands and strong expansion of our reach through stores and digital platforms."
Trent operates Westside, one of India's leading chains of fashion retail stores, Trent Hypermarket which operates in the competitive food, grocery and daily needs segment under the Star banner, Landmark Stores, a family entertainment format store & Zudio which is a one shop destination to get fashion at great value. Westside has 166 stores measuring 8,000-34,000 sq. ft. across 88 cities.
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