Tata group retail firm Trent Ltd on Thursday reported a 34 per cent increase in consolidated net profit to Rs 496.54 crore in the December quarter, helped by the expansion of the store network and increase in attractive value propositions.
The company posted a consolidated net profit of Rs 370.64 crore in the October-December 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 grew 34.32 per cent to Rs 4,656.56 crore during the quarter under review. It stood at Rs 3,466.62 crore in the year-ago period, it added.
The company's total expenses increased 32 per cent to Rs 4,096.08 crore in the December quarter.
The total consolidated income, which includes other income, climbed 33 per cent to Rs 4,715.64 crore during the period under review.
As of December 2024, Trent was operating 238 Westside, 635 Zudio and 34 other stores across other lifestyle concepts, its earnings statement said.
In Q3, Trent had a "faster pace" of store additions and now operates with a significant portfolio of more than 850 "large-box" fashion stores.
"Also, we continue to selectively refresh our store footprint across concepts, with a presence now across 201 cities. During the quarter, we opened 14 Westside and 62 Zudio stores (including 1 in Dubai) across 46 cities and consolidated 2 Westside and 4 Zudio stores," it said.
The gross margin profile of Westside and Zudio remains consistent, it said, adding that overall, the operating EBIT (earnings before interest and taxes) margin for Q3FY25 was 13.1 per cent against 13.3 per cent for Q3FY24.
Trent is also pursuing store portfolio optimisation, which involves upgrading or consolidating smaller footprint stores with newer stores in more attractive micro markets.
"Our differentiated product offerings and an experience at aesthetically attractive stores provide a compelling value proposition to the customers.
"Investments in technology and supply chains have helped deliver steady results.
"The change in revenue participation across our concepts remains broadly in line with our strategic plans," the company said in a statement.
Trent chairman Noel N Tata said the company remains on track to strongly expand its reach and at the same time improve the quality of its store portfolio.
"The strong store opening programme this year together with other levers keeps our growth journey on track.
"The value proposition of our brands continues to resonate well with customers across geographies as reflected in the encouraging results.
"Our fashion portfolio continues to be differentiated by disciplines & choices.
"The market opportunity associated with building brands and a pure play direct-to-customer business like ours remains immense," he said.
Its grocery business Star, now consists of 74 stores, including the addition of eight stores in the current year and witnessed an all-around improved operating performance.
The growth in Star business was "driven by our own brands, staples, fresh & our general merchandise offerings.
"The business registered an operating revenue growth of 25 per cent and a double-digit LFL (Like-for-Like) growth in Q3FY25," it said.
"We continue to apply Trent's playbook to the Star business and are witnessing compelling customer traction.
"We remain convinced that this business is well poised to shift gears and deliver substantial value to customers and shareholders over time," Noel Tata said.
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