Trent Q4 sales up 51% to Rs 3,297.7 crore
Tata group’s retail arm Trent Ltd reported a multi-fold increase in consolidated net profit at Rs 712.09 crore for the fourth quarter ended March 2024, helped by exceptional item gains.
The company had posted a consolidated net profit of Rs 44.95 crore in the January-March quarter a year ago, according to a regulatory filing from Trent Ltd, which operates retail stores under the brand names — Westside, Zudio and Star.
Its consolidated revenue from operations was up 51 per cent to Rs 3,297.70 crore during the quarter under review. It was at Rs 2,182.75 crore in the year-ago period, it added.
During the quarter, Trent had a gain of Rs 576.07 crore as it “reassessed the estimates of measurement and recognition of the right of use assets including related security deposits and corresponding lease liabilities” of lease contracts for its store operations. Trent’s total expenses were higher at 39.21 per cent in the March quarter to Rs 3,073.54 crore in FY24.
“Given the accounting standards, the consolidated top line does not include revenues for our Trent Hypermarket business. Nevertheless, the results include a proportionate share of the profitability of this venture accounted basis the equity method,” the company said.
The total consolidated income of Trent was at Rs 3,374.57 crore in the March quarter, up 48.8 per cent. “The gross margin profile of Westside and Zudio continue to remain consistent with earlier trends. Overall, Operating EBIT margin for Q4FY24 was 8.2 per cent,” it said.
As of March 31, 2024, Trent was operating 232 Westside, 545 Zudio and 34 stores across other lifestyle concepts. “During the quarter, we added 12 Westside and 86 Zudio stores across 65 cities including 25 new cities,” it said.
For the financial year ended March 31, 2024, Trent’s net profit was at Rs 1,477.46 crore, up three fold. It was at Rs 393.63 crore a year ago. The total income of the Tata Group firm in FY24 was at Rs 12,664.38 crore, up 49 per cent.
“In a competitive market, we continue to experience resonance and customer traction for our lifestyle offerings across brands, concepts, categories and channels. The growth of our offerings, resilience of our business model choices and the strength of our platform are reflected in our business results,” Chairman Noel N Tata said.
Over the outlook, Tata said Trent will continue to expand as it is witnessing strong customer traction, which reinforces its conviction to build out this growth engine in the food, grocery, and general merchandising space.
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