Trent Limited on Tuesday recorded second quarter profit for the financial year 2023-24 at Rs 234.73 crore, up 152.3 per cent in comparison to Rs 93.02 crore during the same period last year. It posted revenue from operations at Rs 2,982.42 crore, up 52.7 per cent as against Rs 1,952.74 crore during the second quarter of FY23. While the total income during Q2FY24 stood at Rs 3,062.47 crore, Trent Ltd incurred total expenses of Rs 2,773.52 crore during the quarter ended September 2023.
“Given the accounting standards, our consolidated top line does not include revenues for our Trent Hypermarket business. Nevertheless, the results include the proportionate share of profitability of this venture accounted basis the equity method,” the company said in a statement.
The Star business, consisting of 65 stores, continued to witness improved customer traction with growing sales densities. The business registered operating revenue growth of 30 per cent in Q2FY24 vs the corresponding previous period. Almost, the entirety of this growth was from like-for-like stores and the volume growth was also strong and comparable. The business experienced an all-round operating performance improvement, driven by fresh, general merchandise and apparel categories. “Given the increasingly positive economics, we are convinced that we have a differentiated & scalable model to pursue. Consequently, we see Star as a key and additional growth engine in our portfolio,” it said.
“Our strategic choices continued to drive revenue growth in Q2FY24 amidst relatively subdued market conditions. Operating discipline coupled with focus on execution supported our expansion agenda. Change in the revenue profile across formats remains aligned with our strategic objectives and plans,” it said.
While the gross margin profile of Westside and Zudio continued to remain consistent with earlier trends, overall operating EBIT margin for Q2FY24 was 10.8 per cent (9.7 per cent for Q2FY23).
As of 30th September 2023, the portfolio included 223 Westside, 411 Zudio and 27 stores across other lifestyle concepts. During the quarter, the company added 6 Westside and 27 Zudio stores across 19 cities (4 stores each in Westside and Zudio were consolidated). In Q2FY24, the fashion concepts at Trent registered LFL growth of over 10 per cent vis-à-vis Q2FY23. The company’s emerging categories including beauty and personal care, innerwear and footwear continued to gain traction with customers. Emerging categories now contribute to over 19 per cent of the standalone revenues.
Noel N Tata, Chairman, Trent Limited, said, “Our lifestyle offerings across concepts, categories and channels witnessed strong momentum in Q2FY24 despite challenging market conditions. We continue to see growing relevance for our offerings, resilience in our business model choices and attractiveness of our differentiated platform. We will expand and deepen our store presence with the aim of being ever more proximate and convenient to customers reinforcing our brand promise.”
“We have applied our playbook to the Star business and are witnessing strong customer traction, instilling a growing conviction to build out this growth engine in the food and grocery space. We are confident that this business is well poised to shift gears and deliver substantial value to customers and shareholders going forward. The growing acceptance of our brands demonstrates the attractiveness of our platform and the tremendous potential to address opportunities that lie ahead,” he added.