Oct 29 (Reuters) - India's Trent reported a second-quarter profit rise on Thursday, as strong sales at its fashion and lifestyle businesses and continued store expansion boosted earnings.
Consolidated net profit rose about 23% to 4.64 billion rupees ($48.7 million) in the quarter ended September 30, from 3.77 billion rupees a year earlier.
The Tata Group-owned retailer's results reflected sustained demand for affordable fashion, even as India's apparel industry faced pressure from subdued discretionary spending in the face of rising inflation and a shift in festive purchases to the December quarter.
Many retailers have resorted to opening new stores to widen their network, analysts said.
Trent, which operates the Zudio and Westside chains, had earlier reported a 23% rise in standalone revenue to 57.88 billion rupees, with growth accelerating from the preceding quarter.
The company added 17 Zudio stores and 10 Westside outlets during the quarter, taking its total store count across brands to 1,342 as of September 30, compared with 1,101 a year earlier.
Revenue from operations rose 22% year-on-year to 58.73 billion rupees.
Analysts at ICICI Securities said value-fashion retailers continued to report healthy revenue growth, although much of the increase was driven by new store openings rather than stronger sales at existing outlets.
Trent's fashion business competes with low-cost retailers including Vishal Mega Mart, V-Mart Retail and Reliance Trends, alongside premium apparel chains such as Shoppers Stop and H&M.
Brokerage BofA Securities had flagged higher sourcing costs following disruptions in the Middle East as a potential pressure on Trent's profitability, although it expected improvements in sourcing efficiency, inventory management and the sales mix to support margins.
($1 = 95.3025 Indian rupees)
Reporting by Surbhi Misra and Kashish Tandon in Bengaluru; Editing by Harikrishnan Nair
Source: Reuters