09-08-2024 02:21 PM | Source: Reuters
Indian retailer Trent posts two-fold rise in profit, shares hit record high

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 Indian retailer Trent reported a two-fold jump in first-quarter profit on Friday, boosted by demand at its cheaper Zudio outlets, which cater to budget-conscious consumers.

The retailer's shares jumped 10% to a record high after the results.

The Tata Group-owned company's consolidated net profit rose to 3.93 billion rupees ($47 million) for the quarter ended June 30, from 1.74 billion rupees a year earlier.

This is the company's ninth consecutive rise in quarterly profit.

Trent has been steadily expanding its youth-focused and low-priced brand Zudio, opening sixteen new outlets during the quarter and six new Westside stores, its more premium brand.

The company had a total of 559 Zudio stores 228 Westside stores, as of June 30.

This resulted in its fashion stores registering double-digit like-for-like sales during the quarter, it said.

India's retail sector continues to see fast paced growth, with analysts expecting the industry to be valued at around $4.5 trillion by 2035.

The company also runs Star supermarket stores, which are operated by Trent Hypermarket and British retail major Tesco.

Trent's revenue rose more than 56% to 41.04 billion rupees in the April-June period, its thirteenth straight quarter of revenue growth.

Its operating earnings before interest and tax (EBIT) margin expanded to 10.6% from 7.8% a year ago.

($1 = 83.8940 Indian rupees)