Feb 4 (Reuters) - Trent reported a nearly 3% rise in quarterly profit on Wednesday, as the apparel retailer benefited from a tax-cut-led sales boost while expanding its footprint.
India's late-September tax cuts have boosted consumer spending, putting more disposable income in the hands of consumers.
The Tata group-owned retailer, which owns young adult-focused fashion chains Zudio and Westside, has added more than 100 stores between April and December as it bets on growing demand for cheap branded fashion in the world's most populous country.
"The customer sentiment is gradually improving," Trent Chairman Noel Tata said.
Trent's consolidated net profit rose to 5.13 billion rupees ($56.7 million) for the quarter ended December 31, up from 4.97 billion a year ago.
A one-time charge of 261.1 million rupees, tied to India's new labour laws, hurt its profit in the December quarter.
The company's revenue rose nearly 15% to 53.45 billion rupees, lagging the turbocharged pace of more than 50% recorded six quarters ago.
Competition in the affordable fashion category in India is heating up with rival Aditya Birla Fashion and Retail launching a similarly positioned brand OWND and Shoppers Stop doubling down on its Intune brand.
Shares of Trent closed up 5% ahead of results.
($1 = 90.4730 Indian rupees)
(Reporting by Komal Salecha in Bengaluru and Praveen Paramasivam in Chennai; Editing by Mrigank Dhaniwala)
