Trent Q1 results: PAT up 8.6% at ₹424.7 cr on strong retail performance

Tata group retail firm Trent Ltd on Wednesday reported an 8.6 per cent increase in consolidated net profit to Rs 424.7 crore in the June quarter, driven by steady performance across formats.

The company had posted a consolidated net profit of Rs 391.2 crore in the June-April period a year ago, Trent Ltd said in a regulatory filing.

Consolidated revenue from operations in the first quarter stood at Rs 4,883.48 crore compared to Rs 4,104.44 crore in the year-ago period, it added.

Total expenses in the period under review were higher at Rs 4,368.59 crore against Rs 3,703.96 crore in the same period of the previous fiscal, said the company that runs different retail chains under brands, including Westside and Zudio.

"The business delivered a steady performance during the quarter. We remain focused on evolving our differentiated consumer proposition that appeals to a wider audience across diverse markets," Trent Ltd Chairman Noel N Tata said.

Notwithstanding continuing competitive intensity and interim trends, he said, "We believe an unwavering focus on being relevant to our customers and building resilience with our business model choices will, over time, enable us to deliver significant value."  Stating that building density of presence in key markets allows the company proximity and the ability to service its customers readily, he said both Westside and Zudio now have the scale and reach and enjoy significant consumer awareness.

"We remain on track to build a sizable and scalable pure-play direct-to-customer business in the context of the market size and opportunity," Tata noted.

In the food and grocery space, he said the company continues to apply Trent's playbook in the Star supermarket business, and the contribution of its brands is now trending over 70 per cent of revenues.

"The opportunity in the food space for the Star proposition is exciting while being competitive. We remain convinced that this business is well poised to deliver much consumer value and growth in the years ahead," Tata said.

The Star business now consists of 77 stores, including the addition of 2 stores and closure of 3 stores during the quarter, Trent said.