Luxury fashion brand Zara, which is owned by Inditex, posted a net profit of Rs. 148.76 crore and revenue of Rs. 1,815 crore for the financial year ended 31 March 2022 in India.
The figures are shared in the annual report of Trent Ltd., which has a JV (Inditex Trent Retail India Private Ltd. (ITRIPL)) and is engaged in the operation of Zara stores in India. The Inditex Group of Spain owns 51 per cent, while Trent has 49 per cent in ITRIPL.
In FY ‘21, ITRIPL had reported a net loss of Rs. 41 crore and its revenue fell 28.3 per cent to Rs. 1,126 crore.
The entity for Zara currently operates 21 stores across 11 cities and there has been no increase in the number of stores in the last two years. The report says that the incremental store openings for Zara continue to be calibrated with focus on presence only in very high-quality retail spaces.
Inditex Group also has another similar association with Trent, which operates Massimo Dutti stores in India. It has also reported revenue growth of 43.9 per cent during FY ‘22.
The entity for Massimo Dutti operates three stores and recorded revenues of Rs. 59 crore in FY ‘22. Massimo Dutti India reported profit of Rs. 1.48 crore in FY ‘22.
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.
