InvestorQ : Why did the net profits of Trent take such a big hit in the Mar-21 quarter?
vidhya Laxmi made post

Why did the net profits of Trent take such a big hit in the Mar-21 quarter?

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sarah Leo answered.
4 days ago
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The retail arm of the Tata group, Trent Ltd, actually reported a jump in net profits to Rs.17.44 crore in the Mar-21 quarter compared to just Rs.3.21 crore in the Mar-20 yoy quarter. Net profits were actually up although you are correct that the margins were extremely low in the quarter. Revenues were up around 7% at Rs.905.54 crore.

Chairman, Noel Tata, underlined that the recovery from the lows of COVID in the previous year were fairly encouraging and spoke of a strong recovery. Currently, Trent boasts of a network of over 300 fashion stores in its portfolio with many more additional locations likely to open, hopefully once the impact of the pandemic gets watered down.

However, for FY21, Trend reported a net loss of Rs.181 crore in contrast to a net profit of Rs.106 crore in FY20. Due to the lag effect of the pandemic, Trend saw its full year revenues fall by 25.6% to Rs.2,593 crore. The management is still confident that once the COVID abated, the customer demand would also rebound strongly. Trent is also heavily investing in taking more of its business digital.

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