365telugu.com online news,Mumbai, 4 February, 2021: Trent Limited (the “Company”), announced its financial results for the nine months ended December 31st,2020 (standalone and consolidated).
Standalone Results
.During the quarter, Covid-19 related restrictions eased considerably aiding sentiment and improving consumer traction. In this backdrop, revenue from operations recovered to Rs. 725crs at 83% of last year levels. This coupled with various cost mitigation measures, including with respect to property related payouts and operating expenditures, led to Profit from operations1registering encouraging growth.
. The extended store closures in Q1 had resulted in unprecedented incremental provisioning with respect to inventories. Given the traction in recent months, the related provisioning levels have been evaluated and reset (impact of around Rs.14cr in Q3).Nevertheless, we continue to adopt a conservative approach consistent with our inventory related policies.
.In Q3, we crystallized several arrangements with respect to reductions in rent and related charges.As required by the applicable standards,Rs 19crs in Q3 and Rs.77cr in nine months have been accounted as part of other income notwithstanding their operating nature.
.The reported results also 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 Ind AS 116 on the standalone profit before tax for the quarter ended December 2020 was an adverse impact of Rs. 14crs in Q3 and Rs. 52crs in the 9 months.
.Westside revenues in Q3 were 78% as compared to the corresponding previous period (Like to Like of negative 26%). Nevertheless, the trajectory of revenues has continued to improve month
to month with encouraging trends. For instance, in Jan 2021 (end of season sale month), traction
for full price merchandise was consistent with the levels witnessed in the previous year in both
quantity and value terms.1 excluding non-operating income, finance costs, tax and IndAS 116 impact
.Our customers continue to increasingly leverage the convenience of our digital platforms with the online channel registering over 80% growth in Q3. Also, we remain focused and committed to the accelerated store expansion agenda. To date, in FY21, we have opened 28 new stores (20 Zudio, 6 Westside, 2 Landmark) and we continue to pursue opportunities in all relevant micro markets.
Consolidated Results
.For Q3, consolidated revenues of Rs. 854crs was 85% of the corresponding previous period. Profit after tax as attributable to the equity shareholders of the company was Rs. 74crs vis-à-vis Rs. 54crs in Q3 FY20.
.The consolidated results also incorporate the IndAS 116 lease accounting requirements. The net effect of Ind AS 116 on the reported profit before tax for the quarter ended December 2020 was an adverse impact of Rs. 11crs and for the nine months it was an adverse impact of Rs. 54crs.Speaking on the performance, Mr. Noel N Tata,Chairman, Trent Limited said, “We witnessed an encouraging festive season across our concepts as Covid related impacts receded. Nevertheless, given the
headwinds, we continue to emphasize cost mitigation measures and realization of related efficiencies over
the medium term.We are cautiously optimistic on the outlook and are broadly on track with respect to our store expansionprogram in FY21 with a significant number of store locations currently under fit out. Near term uncertaintiesnotwithstanding, we are continuing focus on building out differentiated brands and strong expansion of ourreach through stores and digital platforms.”