Zudio-parent Trent on February 6 reported a net profit of Rs 496.54 crore for the third quarter of the current financial year. This marks a rise of 34 percent from the Rs 370.64 crore net profit reported in Q3 of previous financial year.
Its revenue from operations meanwhile jumped 34 percent on-year to Rs 4,656.56 crore.
The Q3 results are more or less in line with estimates. According to a Moneycontrol poll of five brokerages, Trent was expected to report a revenue of Rs 4,613 crore in Q3, while net profit was estimated at Rs 505 crore.
The company reported a total income of Rs 4,715.64 crore in Q3 of FY25. This marks a strong rise from the Rs 3,546.95 crore total income reported in Q3 of the previous financial year. Its total expenses increased to Rs 4,096.08 crore during the reported quarter.
The company said that during the reported quarter, it opened 14 Westside and 62 Zudio stores (including 1 in Dubai) across 46 cities and consolidated 2 Westside and 4 Zudio stores. At the end of the quarter, its store portfolio included 238 Westside, 635 Zudio and 34 stores across other lifestyle concepts.
Also read: Our LIVE blog on Q3 results
Among Trent's business segments, its fashion concepts registered a high single digit LFL growth. As of 31st December, it had a footprint of over 11 million sqft. across its fashion brands including Zudio, Westside and others. This marks an increase of 33 percent over the previous year.
"The emerging categories including beauty & personal care, innerwear and footwear continued to gain traction with customers. These emerging categories contribute to over 20% of our revenues," the company said.
Trent's food and grocery segment however saw LFL growth slow down to 10 percent, as against 24 percent in the year-ago period. Its revenue however continued to increase sharply.
Noel Tata, Chairman of Trent, said, "We remain on track to strongly expand our reach and at the same time improve the quality of our store portfolio. The strong store opening program this year together with other levers keeps our growth journey on track. The value proposition of our brands continues to resonate well with customers across geographies as reflected in the encouraging results. Our fashion portfolio continues to be differentiated by disciplines & choices. The market opportunity associated with building brands and a pure play direct-to-customer business like ours remains immense."
He added, "We continue to apply Trent's playbook to the Star business and are witnessing compelling customer traction. We remain convinced that this business is well poised to shift gears and deliver substantial value to customers and shareholders over time."
Along with the Q3 results, the Tata Group company also announced that it has decided to sell nearly 1.75 lakh shares in Massimo Dutti India for Rs 20.75 crore. After the stake sale, the company's shareholding in the company would reduce from 49 percent to 20 percent. Notably, Grupo Massimo Dutti from Spain has offered to buy the shares from Trent. The stake sale is set to be executed by the end of March.
After the Q3 results, the shares of the company crashed 7 percent and were trading at Rs 5,359 per share, as seen as 2.50 pm. The stock sees significant volumes, trading at nearly 4 times its 10-day average volume.
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