Department Stores company Trent declares Q4FY22 result: Revenues up 54% Online revenues grow 85% Fashion portfolio of over 435 stores with 125+ stores added in FY22 In Q4, Westside registered LFL growth of 16% and 21% vis-à-vis FY20 and FY21 respectively. With the opening of its 200th store, Westside continued to drive its store expansion program in FY22 Westside now reaches a growing online audience also through Tata Neu - the recently launched super app that seeks to unite the Tata brand universe. Our customers continue to increasingly leverage the convenience of digital access with the online channel registering 74% growth in FY22 over the previous year and contributing to around 7% of Westside revenues. Digital content and social media initiatives are increasingly central to the ongoing communication of our customer offer. We have also launched exclusive styles on our online platform which are witnessing encouraging traction. Emerging categories like beauty and personal care, innerwear and home continued to gain traction with customers The operating profit in Q4 was impacted by disruption of operations given the third wave of the pandemic. Unlike in wave 1 and 2, there was no commensurate reduction forthcoming from stakeholders given the intermittent nature of these disruptions. Also, in the backdrop of the third wave, we saw lower full price participation in the January End Of Season Sale (EOSS) which materially impacted realised margins for the quarter. From March, realised margins have since recovered and are broadly consistent with the trends witnessed during Q3 In FY22, both revenues and operating profitability strongly recovered vs FY21 despite the 2nd and 3rd waves of the pandemic. Over a three-year period (FY19 – FY22) revenue as well as operating profitability registered a CAGR of over 15% notwithstanding the interim impacts of the pandemic The reported results incorporate the IndAS 116 lease accounting requirements reflected across rent, depreciation, other income and finance costs in the statement of profit and loss. The net effect of IndAS 116 accounting on the standalone profit before tax was an adverse impact of Rs 26 cr in Q4 and Rs 96 cr in the full year. Other income primarily includes rent waivers, investment & dividend income and recognition of IndAS 116 impact of lease modification/ terminations Consolidated Results: Consolidated revenue for Q4 of Rs 1,412 cr grew by 38% over Q4 FY21 and 54% over Q4 FY20. Profit after tax was Rs 15 cr as attributable to equity shareholders in Q4 For the year ended March 31st , 2022, the Company recorded revenues of Rs 4,812 cr and Profit after tax of Rs 112 cr as attributable to equity shareholders The consolidated results also incorporate the IndAS 116 lease accounting requirements. The net effect of IndAS 116 was an adverse impact of Rs 28 cr for the Q4 and Rs 104 cr for the full year. Speaking on the performance, Mr. Noel N Tata, Chairman, Trent Limited said, “Our fashion concepts displayed resilience to pandemic related challenges in FY22. Our continued emphasis on network growth during the preceding two years is starting to yield results as the pandemic impacts fade. Westside is now trading at an annual revenue run-rate of over Rs 5000 cr and commands encouraging market presence and traction. Our Star food business with tight footprint stores, sharp pricing and focus on fresh & own brands is a model that is continuing to witness resilient customer traction. The performance of Star stores operating under this model is encouraging and we are evolving our property portfolio to align with this proposition. Led by our passionate teams, we are in the initial laps of our growth as we continue to expand our reach and reinforce our lifestyle offerings across concepts, categories and channels. The growing acceptance of our brands demonstrates the attractiveness of our platform and the tremendous potential to address opportunities that lie ahead.” Result PDF
Department Stores company Trent declares Q3FY22 result: Fashion portfolio of over 375 stores Revenues up 85% Profit from operations up 79% Online revenues grow 99% Consumer sentiment continued to recover in Q3 on the back of the maturing vaccination drive, further relaxation of pandemic related restrictions and the festive season Our fashion concepts operated during the quarter with a degree of normalcy and limited pandemic related loss of trading days/ time Westside registered revenues of over Rs 1,000 cr for the quarter with LFL growth of 9% and 49% vis-à-vis FY20 (pre-covid) and FY21 respectively Emerging categories like beauty and personal care, innerwear and home saw growing traction Westside witnessed robust traction online with over 5% of revenues coming from online channels in the 9M even as stores recovered fully On the back of robust recovery in revenues, operating profitability also registered encouraging growth. As required by the applicable standards Rs 10 cr has been accounted as part of other income in the current quarter notwithstanding its operating nature The reported results incorporate the IndAS 116 lease accounting requirements reflected across rent, depreciation, other income and finance costs in the statement of profit and loss. The net effect of IndAS 116 accounting on the standalone profit before tax was an adverse impact of Rs 26 cr in Q3 and Rs 70 cr in 9M. Other income primarily includes rent waivers, investment & dividend income/ fair value changes and recognition of IndAS 116 impact of lease modification/ termination. Consolidated revenues of Rs 1,613 cr grew by 87% over Q3 FY21 and 53% over Q3 FY20 Profit after tax of Rs 140 cr (as attributable to equity shareholders) registered a growth of 87% over Q3 FY21 and 159% over Q3 FY20 The consolidated results also incorporate the IndAS 116 lease accounting requirements. The net effect of IndAS 116 was an adverse impact of Rs 28 cr for the Q3 and Rs 76 cr for the 9M. Speaking on the performance, Mr. Noel N Tata, Chairman, Trent Limited said, “The third quarter witnessed a strong business rebound and we have been pleasantly encouraged by the rapid recovery in customer offtake. In many ways, the playout in Q3 is indicative of the performance potential of our brands both in terms of growth as well as profitability. Our prospects remain robust owing to an accelerating shift to branded products, emergence of digital/seamless channels of engagement and a growing appetite for aspirational yet strong value propositions. On the fashion front, we are on-track to have more than 425 fashion stores by March 2022. Increasingly, our Star food business with tight footprint stores, sharp pricing and focus on fresh & own brands is a model that is witnessing resilient customer traction. The performance of Star stores operating under this model is encouraging and we continue to evolve our property portfolio to align with this proposition. Given the milder playout of the Omicron wave and the mature vaccination drive, I increasingly believe we are moving on to the next phase of recovery and growth. We are confident that the business has the expertise and importantly the ambition to pursue market opportunities with an integrated back end and nevertheless differentiated customer propositions. We remain committed to building out differentiated brands and a strong expansion of our reach through stores and digital platforms.” Result PDF