Tata group retail firm Trent posted a net profit of Rs 114.93 crore for the quarter ended June against net loss of Rs 138.29 crore in the same quarter of the previous year. Sales rose three-fold to Rs 1,803.15 crore from Rs 491.99 crore in the year-ago period due to improved consumer sentiments.
Operating margin was at 16.2% during the quarter. Last year, with total expenses exceeding sales, Trent had posted negative Ebitda (earnings before interest, tax, depreciation and amortisation).
Total expenses rose two-fold on-year to Rs 1,734.28 crore, mainly due to higher raw material costs.
Chiarman Noel N Tata said, “Our fashion concepts displayed strong growth momentum in Q1FY23. The company stands away from predominant and proximate market practices of the time, and completely own-branded offerings, entirely direct-to-consumer reach, not discounting in season and not advertising are all cases in point.”
Trent operates its retail business under flagship brand Westside.
Tata said the company’s online revenues through Westside.com, Tatacliq and Tata Neu contributed approximately 6% of Westside revenues, registering a 129% growth in Q1FY23 over the corresponding quarter in the previous year.
Emerging categories, including beauty and personal care, innerwear and footwear, witnessed traction from customers.