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.
