Trent witnesses marginal Q3 profits increase

Tata Group firm Trent has registered a marginal increase

in its net profit for the third quarter ended December 31, 2011 at Rs 14.10 crores compared to the same period in the lastfiscal. This has happened on account of restructuring of some of its formats. The company had a net profit of Rs 14.01 crores in the same period last fiscal.

The company’s net sales rose23.51 per cent to Rs 230.92 crores in Q3 of current fiscal, as against Rs186.96 crores in the same period last financial year. "The results of thequarter have been impacted partly by decision of the company to wind down lossmaking Fashion Yatra format (five stores) and substantially restructure theSisley franchise operations," Trent said in its filing in BSE.

The restructuring exercise isexpected to be completed in this financial year, it added. The company operatesa large number of stores in India including Westside (fashion and lifestylechain), Star Bazaar (a hypermarket chain), Landmark (books and music stores)and Fashion Yatra (a family fashion store).

Subsequent to the quarterend, Trent has subscribed to the rights issue of equity shares of TrentHypermarket Ltd (THL), wholly owned subsidiary of the company to the extent ofRs 199.98 crores. THL has utilised the funds to repay loans given earlier bythe company, the filing added.