MUMBAI: The retail arm of the Tata group, Trent, has reported a 34% increase in consolidated net at Rs 496.54 crore in the December quarter, helped by store expansion which lead to higher footfalls getting converted into sales.
Trent operates retail stores under the brand names Westside, Zudio and Star. As of end December, it was operating 238 Westside stores, 635 Zudio and 34 other stores across other lifestyle concepts.
Consolidated revenue from operations grew 34.32% to Rs 4,656.56 crore during the quarter, while its expenses rose 32% to Rs 4,096.08 crore and the total consolidated income, which includes other income, climbed 33% to Rs 4,715.64 crore, the company said Thursday.
During the reporting quarter, Trent had a "faster pace" of store additions and now operates with a significant portfolio of more than 850 "large-box" fashion stores, chairman Noel Tata said.
"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 one in Dubai) across 46 cities and consolidated two Westside and four Zudio stores," he added.
Gross margin profile of Westside and Zudio remains consistent, he said, adding overall, the operating margin stood at 13.1% as against 13.3%.
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," he said in the statement.
Tata also 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 market opportunity associated with building brands and a pure play direct-to-customer business like ours remains immense," he said.
The grocery business arm 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,” he said, adding it registered an operating revenue growth of 25% and a double-digit like-for-like growth in the quarter.
"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.