Quarter ended Sep 2021 compared with Quarter ended Sep 2020.

Net sales (including other operating income) of Trent has increased 101.25% to Rs 1178.09 crore.  

Operating profit margin has jumped from 0.06% to 17.80%, leading to 55,092.10% rise in operating profit to Rs 209.73 crore.  Purchase of finished goods cost rose from 55.37% to 59.20%.   Employee cost decreased from 15.49% to 6.83%.   Other expenses fell from 29.05% to 18.15%.   

Other income rose 27.53% to Rs 47.44 crore.  PBIDT rose 584.33% to Rs 257.17 crore.  Provision for interest rose 24.81% to Rs 75.35 crore.  Loan funds remained nil.  Inventories rose to Rs 691.92 crore as of 30 September 2021 from Rs 388.19 crore as of 30 September 2020.  Sundry debtors were lower at Rs 12.07 crore as of 30 September 2021 compared to Rs 14.47 crore as of 30 September 2020.  Cash and bank balance rose to Rs 79.46 crore as of 30 September 2021 from Rs 57.25 crore as of 30 September 2020.  Investments rose to Rs 1,409.91 crore as of 30 September 2021 from Rs 1,349.81 crore as of 30 September 2020 .  

PBDT stood at Rs 181.82 crore compared to loss of Rs 61.57 crore.  Provision for depreciation rose 15.91% to Rs 72.85 crore.  Fixed assets increased to Rs 3,430.56 crore as of 30 September 2021 from Rs 2,728.87 crore as of 30 September 2020.  Intangible assets increased from Rs 68.24 crore to Rs 71.08 crore.  

Profit before tax reported profit of Rs 108.97 crore compared to loss of Rs 85.64 crore.  Provision for tax was debit of Rs 38.98 crore, compared to credit of Rs 24.3 crore.  Effective tax rate was 32.76% compared to 23.62%.

Minority interest decreased 80.49% to Rs -12.58 crore.  

For year-to-date (YTD) results analysis.

Net sales (including other operating income) of Trent has increased 100.30% to Rs 1670.08 crore.  

Operating profit margin (OPM) has turned from negative 14.80% to positive 9.98%, Operating profit for the quarter stood at Rs 166.59 crore compared to loss of Rs 123.36 crore.  Purchase of finished goods cost fell from 64.95% to 62.19%.   Employee cost decreased from 22.11% to 9.42%.   Other expenses fell from 32.46% to 19.75%.   

Other income rose 9.15% to Rs 100.24 crore.  PBIDT stood at Rs 266.83 crore compared to loss of Rs 31.52 crore.  Provision for interest rose 21.73% to Rs 146.59 crore.  Loan funds remained nil.  Inventories rose to Rs 691.92 crore as of 30 September 2021 from Rs 388.19 crore as of 30 September 2020.  Sundry debtors were lower at Rs 12.07 crore as of 30 September 2021 compared to Rs 14.47 crore as of 30 September 2020.  Cash and bank balance rose to Rs 79.46 crore as of 30 September 2021 from Rs 57.25 crore as of 30 September 2020.  Investments rose to Rs 1,409.91 crore as of 30 September 2021 from Rs 1,349.81 crore as of 30 September 2020 .  

PBDT stood at Rs 120.24 crore compared to loss of Rs 151.94 crore.  Provision for depreciation rose 11.89% to Rs 141.38 crore.  Fixed assets increased to Rs 3,430.56 crore as of 30 September 2021 from Rs 2,728.87 crore as of 30 September 2020.  Intangible assets increased from Rs 68.24 crore to Rs 71.08 crore.  

Loss before tax has fallen 92.40% to Rs -21.14 crore.  Share of profit/loss was 78.73% higher at Rs -11.72 crore.  Extraordinary items were decreased to Rs -11.90 crore.  Provision for tax was debit of Rs 13.55 crore, compared to credit of Rs 71.79 crore.  Effective tax rate was negative 30.27% compared to 21.47%.

Minority interest decreased 80.19% to Rs -24.29 crore.  Net profit attributable to owners of the company increased 86.34% to Rs -34.02 crore.  

Equity capital stood at Rs 35.55 crore as of 30 September 2021 to Rs 35.55 crore as of 30 September 2020.  Per share face Value remained same at Rs 1.00.  

Promoters' stake was 37.01% as of 30 September 2021 ,compared to 37.01% as of 30 September 2020 .  

Cash flow from operating activities has turned negative Rs 107.15 crore for YTD ended September 2021 from positive Rs 48.24 crore for YTD ended September 2020.  Cash flow used in acquiring fixed assets during the YTD ended September 2021 stood at Rs 68.73 crore, compared to Rs 21.15 crore during the YTD ended September 2020.  

Management Commentary

Speaking on the performance, Mr. Noel N Tata, Chairman, Trent Limited said, "The second wave and the aftermath disrupted our operations across our concepts in the first quarter. Nevertheless, we have been pleasantly encouraged by the rapid recovery in customer offtake starting from the middle of June as the business reopened in many markets.

Our fashion business has, in particular, recovered sharply and is now back to operating profitability. We continue to focus on our expansion program and I am happy to report that we are seeing good progress on building a strong pipeline, even as the constraints for actual opening to customers remains a challenge in the near term in the case of mall locations/ select markets.

Increasingly, we are also convinced that the model we have pursued with our Star food business over the last couple of years-tight footprint stores, sharp pricing, focus on fresh etc is resilient and has strong economic viability. The customer traction witness by Star stores operating under this model has been encouraging. In this context, we are actively readjusting properties on the basis of this model and are looking to pursue a significantly accelerated expansion program.

While we cannot predict how quickly we will see the end of this pandemic, we know that it will get behind us, especially given the substantial vaccination program. We are confident that the business has the expertise and importantly the resilience to navigate and leverage this difficult phase. Near term uncertainties notwithstanding, we are continuing to focus on building out differentiated brands and strong expansion of our reach through stores and digital platforms."