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Trent Limited (the “Company”), today announced its financial results for the third quarter ended December 31st, 2021 (standalone and consolidated)

StandaloneResults

Consumer sentiment continued to recover in Q3 on the back of the maturingvaccination 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 LFLgrowth 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 Results

* 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.

Outlook

As of date we operate 197 Westside and 177 Zudio stores. We continue to remain focused on accelerating our store expansion program. Also, we are committed to delivering an aspirational lifestyle experience across our portfolio. In keeping with this agenda, we are prioritising refresh of our stores and simultaneously consolidating/ exiting stores that are suboptimal from a brand perspective.

Our transition to an annual subscription model (WestStyleClub) has witnessed positive offtake from customers with significant jump registered in on-going recruitment, initial spends, broad basing of category penetration and renewals in recent weeks. In many ways the muted footfall recovery was compensated by significant growth in spends of StyleClub members.

Over the recent quarters, notwithstanding the pandemic, we have retained the emphasis on inventory disciplines and initiatives to drive supply chain efficiencies. Consistent with our disciplines, we commenced the autumn/winter end of season sale (EOSS) only on 1 st January 2022 and exited the EOSS within planned timelines. While the Omicron wave impacted sales in January, it was mitigated in part by the strong online traction for Westside and the recovery in the last fortnight has been encouraging.

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