Zara’s India revenue in FY22 rises to Rs 1,815 cr; profit at Rs 148.76 cr

Spain’s Inditex, which owns luxury fashion brand Zara, posted a net profit of Rs 148.76 crore and revenue of Rs 1,815 crore for the financial year ended on March 31, 2022, according to the latest annual report of Trent Ltd.

In FY21, Inditex Trent Retail India Private Ltd (ITRIPL), a JV which is engaged in the operation of stores in India, had reported a net loss of Rs 41 crore and its revenue fell 28.3 per cent to Rs 1,126 crore in the pandemic impacted year.

The Inditex group of Spain owns 51 per cent while Trent has 49 per cent in ITRIPL.

“During the year under review, the entity recorded revenues of Rs 1,815 crore,” said the annual report of Tata group retail arm Trent.

The entity for currently operates 21 stores across 11 cities. There has been no increase in the number of stores in the last two years.

“The incremental store openings for Zara continue to be calibrated with focus on presence only in very high-quality retail spaces,” it said.

Zara competes with the likes of other foreign brands such as H&M, and UNIQLO in India.

Inditex group of Spain has another similar association with Trent, which operates stores in India. It has also reported revenue growth of 43.9 per cent during FY22.

“The entity for operates 3 stores and recorded revenues of Rs 59 crore in FY22,” it said.

India Pvt Ltd had reported a profit of Rs 1.48 crore in FY22.

The business of both entities is essentially limited to the distribution of Zara and Massimo Dutti products in India. Both entities are required to source merchandise only from the Inditex Group.

“Also, the choice of product and related specifications are at the latter’s discretion. Further, the entities are dependent on the Inditex group for permissions to use the said brands in India subject to its terms and specifications,” said Trent.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *