Annual Financial statements of westside

financials of the company,trent sub brands, existing product strategy, rank wise competitors, stores, retail business area, sales per square feet of business area, operating standards, revenue sales, operating profit, profit after tax, financials, looking forward

1. OMNI CHANNEL
PLANNING AND BUYING
NATIONAL INSTITUTE OF FASHION TECHNOLOGY,
HYDERABAD
ANALYSIS OF
ANNUAL FINANCIAL STATEMENT
WESTSIDE
Submitted to:
Dr. GHS Prasad

Submitted by:
Anjorie Srivastava
Manipriya Tyagi
Shagun Tewari
Tripti Singh

2. INDEX
INTRODUCTION
FINANCIALS OF THE COMPANY
TRENT SUB BRANDS
WESTSIDE
WESTSIDE- EXISTING PRODUCT
STRATEGY
COMPETITORS
RANK WISE COMPETITORS
STORES
RETAIL BUSINESS AREA
FOCUS OF THE BRAND IN FY19
SALES PER SQUARE FEET OF
BUSINESS AREA
OPERATING STANDARDS
REVENUE SALES
OPERATING PROFIT
PROFIT AFTER TAX
FINANCIALS
LOOKING FORWARD
REFERENCES
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3. INTRODUCTION
Trent Limited (Trent) is a leading branded retail group. Westside is the cornerstone of Trent's
retail sector offering an exclusive collection of its own branded apparel. Their mission is to
develop and supply fashion & lifestyle brands while keeping them new at all times.
Customers are young, ambitious, risk-takers who enjoy this exhilarating journey with
everyone. With more than 200 stores across Westside, Zudio, Landmark and Star Bazaar
bringing a modern retail experience to India is their beat. The company focuses on fashion,
food, beauty, home and technology. Trent is all about simple, clean and creative retail,
making the little things seem so stylish but so effortless. As part of the TATA fold, the
brand's core values echo sustainability, accountability and diligent market engagement.
Shares of Trent Ltd have risen nearly 40% in the fiscal year 2019. The company is on an
expansion mode and at the same time delivering in terms of financial performance. This is
helpful, especially at a time when many consumer-oriented firms are feeling the heat from a
demand slowdown. One factor that has helped Trent get the price-conscious Indian
consumer’s attention is by making its products available at attractive price points, particularly
at Westside and Zudio. In FY20 so far, both these formats have fired on growth, however the
company is adding stores in the Westside format. Strong execution on store additions will be
a key factor to monitor for the stock













Established in 1998 and part of the Tata group, Trent is headquartered in Mumbai but has
pan-India operations. Trent is one of the leading players in the branded retail industry in
India.The company primarily operates stores across four formats, as below.

TRENT-PARENT COMPANY
1

4. FINANCIALS OF THE COMPANY
Revenue for Westside stands at Rs. 10,225/sq.ft, which is the highest compared to
Central, at Rs. 7,183/sq.ft and Shoppers Stop, at Rs. 2,807/sq.ft, respectively. Westside's
performance in the same-store sales (SSSG) over the past five years has been steady at 9
per cent. Higher contribution from private labels and better store fundamentals helped
Trent record a steady increase in OPM (Oxford Policy Management), which stood at
9.5% in FY2019, up from 4.1% in FY2015. Through launching Zudio (40 stores opened
in 25 cities) with exclusive fashion produced in-house, the company has recently joined
the value fashion market. Most of the Zudio stores generate Rs. 14,000/sq.ft sales, which
is the highest in the industry. The hypermarket venture of the company (Star Bazaar) is
in a mode of restructuring and focuses on fresh offering through a product assortment.
Good financial history, sound balance sheet Consistent market growth, good penetration
of exclusive brands and lower shrinkages helped Trent achieve 17% and 31% CAGR
strong sales and earnings, respectively, over FY2015-FY2019 (operating profit registered
44% CAGR over the same period).For an operating cash period standing at 34 days, the
firm has stable working capital management. Given a substantial portion of cash flows
blocked in working capital and vigorous store introduction, the total debt / equity ratio of
Trent is 1x stable. The company had plans to raise Rs. 1,550 crore by way of equity
issuance, of which Rs. 950 crore was paid to promoters by preferential allocation. This
will be used to add 100 stores a year, including Westside and Zudio, to further expansion
plans. The return profile of the company is slightly low as the company is currently in
investment mode and some of its undertakings including Zudio still have to split. Scaling
up in Zudio's operations and opening out new Westside stores will, however, help boost
return ratios in the coming years.
Led by differentiated product offerings & store experience, Trent has accelerated the
store expansion program in FY19 and operates 264 stores across more than 70 cities in
India.
2

5. TRENT SUB BRANDS
WESTSIDE: The lead fashion brand with more than 22 labels all designed in-
house, including women's wear, menswear, kidswear, footwear, lingerie,
cosmetics, perfumes, accessories and home furniture.
LANDMARK: Inspiring the kid in the brand, the brand is a playground for
books, toys, music, accessories to lifestyle, electronics, sporting goods and more.
The brand collaborates and springs from around the world, and trades with
creativity in our market.
STAR BAZAAR: Trent and Star Bazaar entered into the hypermarket industry in
2004. Keeping things fresh forever, the brand’s clean and modern formats make
people’s household's regular grocery, food and shopping simple. All of the
internal customers and external customers are a group of foodies and traders who
aim to make shopping an enjoyable experience every day.
ZUDIO: Aggressively popping through India, Zudio is taking enticing fashion to
the forefront at unrivaled prices. Zudio builds all in-house and loves cool-
spirited, trend-sused men. The brand enjoys the formation of tribes and the
development of wonderful opportunities along the way.

















Trent primarily operates stores across four formats, as mentioned below:
3

6. WESTSIDE
Vision of the brand is - to design & deliver 22
fashion brands that are authentic, trusted for
trends, offer exceptional value and sell it in an
environment that offers an overall experience.
Their Customer Promise is - First Price. Right Price.
With a collection that's self-assisted, curated with
fashion solutions highlighting incredible value and
edited monthly launches. The brand is famous for
the main point of view as it comes alive through
their back walls & 'See It Buy It'. The tables drive
Seasonal Statement Lines that excite with style and
value. Brand’s service is efficient, our space is easy
to navigate and their returns policy is simple and
customer friendly. The brand is confident,
optimistic, colourful and has a youthful spirit.
4

7. WESTSIDE'S EXISTING
PRODUCT STRATEGY
PRODUCTS CHARACTERISTICS: Westside stores owned 3:7 ratio labels
and other signs. There are two primary product group divisions: Apparel (men's
wear, women's wear, lingerie and children's wear) and Various Utility Products
(home decoration, shoes, deodorants, cosmetics etc.). They do have a variety of
male and female Footwear along with this.
PRODUCT DIFFERENTIATION: Most of the products are in-house products
and differentiated along with the pledge of Tata's brand name, based on their
superior quality. All products deliver a high level of conformance. 
BCG MATRIX


Westside recently introduced two-way stretching lines as it served primarily the
upper middle-class market and aimed to widen its customer base and raise profit
margins.
5

8. PRICING STRATEGY
The pricing method used by Westside is ‘Value Pricing’ whereby the
products are offered to customers at a constant low price throughout the year
with help of various sales and discounts.
Seasonal pricing is used to increase the movement of products out of the
store where a discount is offered on purchase of seasonal products.
Bundled pricing is also used to motivate shoppers to buy in bulk
Westside keeps the price of the store products in a range matching or below its
competitor’s price range.
PLACE STRATEGY
All stores get their stocks every week on Friday from Mumbai.
Because of higher purchasing power of the general population of Mumbai
and the head office being situated in the same spot, stores in Mumbai have
the highest assortment of items.
In metro cities like Mumbai and Kolkata, more products are available and
slightly on the more costly side contrasted with a city like Nagpur.
In some prime areas in Delhi, Westside built an exclusive showroom to cater
to the needs and demands of women
Westside has most of its stores in malls and few exclusive showrooms in big
cities. Westside stores are located very near to its main competitor Pantaloons in
all major cities. Westside has its head office situated in Mumbai.From the
interactions with store managers, the following facts were known:
In-house Promotions- is achieved by show media, using signage and posters to
promote new and discounted items to consumers. Customers including vouchers
and next-purchase discounts are offered different sales marketing rewards.
Exchanges of no-question, redeemable points and free home delivery for card
holders also help to boost the shopping experience.
External Promotions- Westside used Rs 33.68 Crores for advertising for the year
2014. Sometimes, Westside references different deals in their advertising. In
contrast with 2002, when they signed Yuvraj Singh as their brand ambassador,
Westside currently has no celebrity endorsement.
PROMOTIONAL STRATEGY
6

9. WESTSIDE’S BRAND EQUITY
Presence: Westside has put itself strategically in the areas that are most open
to people. Getting a parent company TATA helps to increase the prestige of
its brand. Customers however prefer Pantaloons and Lifestyle over Westside,
which supply products in the same price range. Westside stores have recently
been evicted from malls and are being replaced by international brands such
as H&M, Zara and Forever 21.
Relevance: Westside offers best-in-class products with services at flexible
costs, with its vision to deliver fashionable and quality products at affordable
prices. But Westside needs an improvement in the variety of items for the
hour.
Performance: Westside has the largest number of domestic brands in the
retail apparel industry in India. Compared to fashion and pantaloons it has a
smaller percentage of foreign / western products on its shelves.
Advantage: One of the core competencies of Westside is its high product
quality at an affordable price with the aid of in-house marks and private
labels.
Bonding: Westside doesn't receive a high proportion of faithful and repeat
customers.
As per Brand’s model, Westside’s brand equity can be analyzed as follows:
PRODUCT LIFE CYCLE
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10. SHOPPERS STOP
LIFESTYLE
PANTALOONS
Shoppers Stop is regarded as one of the biggest competitors in of Westside.
Shoppers Stop was built in 1991 at Mumbai, Maharashtra}. Shoppers Stop is
active in the supermarket distributors market. Shoppers Stop generates more sales
than The Westside, raising $184.2M.





Lifestyle is # 2 competitors of Westside. Founded in 1999, Lifestyle has its
headquarters in Inn Bangalore, Karnataka. Lifestyle is in the Distributors Retail
area. Lifestyle has 3,000 fewer workers than at The Westside.








Pantaloons is # 3 rival of Westside. Pantaloons has its headquarters in Mumbai,
Maharashtra and was founded in 1997. Pantaloons also participate in the Fashion
Retail sector, on The Westside. Pantaloons produces The Westside's sales 100 per
cent.
COMPETITORS
8

11. RANK WISE COMPETITORS
In addition to existing chains such as Lifestyle, Shoppers Stop and
Pantaloons, India has in recent years attracted some of the world's largest
fashion brands, including H&M, Gap and Uniqlo, which are betting on
increasingly Western-style clothing for young consumers.
9

12. STORES
The Westside stores have several departments to meet the varied shopping needs of
customers. These include menswear, womenswear, kidswear, footwear, cosmetics,
perfumes and handbags, household furniture, accessories, lingerie and gifts. Well-
designed interiors, sprawling space, prime locations and coffee shops enhance the
customers' shopping experience. Westside has seen healthy expansion in their store
footprint, driving revenue and earnings growth. In FY19, Westside added 27 new
stores- the highest ever in a year. Trent is also committed to add 40 stores every year
starting from 2020.  
Presently there are already about 154
Westside stores in India, with 30-40
of them being franchised, measuring
8000-34000 square feet floor space
across 74 cities. The brand is opening
on an average about one store every
week.
In the year 2017-18, there were 129
stores, (20 stores were opened across
metros & non-metros.) Also, 2 stores
which were seen to be present in
declining/ unviable locations and
lacking a sustainable growth outlook
were closed.
Fully integrated store and online fashion retailing is increasingly gaining traction in
India. With an aim to address this fast emerging market, Westside strengthened the
exclusive online offer on TataCLiQ in 2017-18. They pursued to increase the brand
visibility online and adopt an omni-channel approach to servicing their audience. The
platform gained traction in FY 2017-18 and Westside online revenues were up over
three-fold vis-à-vis the previous year (FY 2016-17). Omni-channel initiatives
account for over 75 percent of the total sales through this channel. Overall, Westside
continues to be a pro table concept and has registered encouraging results in the
recent years.
10

13. RETAIL BUSINESS AREA
An average Westside store has a footprint of around 18,000 sq. ft. Total investment
in a new Westside store leased and operated by the Company is in the region of ₹ 6-
7 Crores across capex, deposits and inventory.
A new store requires fit-out investment of around ₹ 2,000-2,500 per sq. ft. The top-
24 cities (metros, mini-metros and tier-I cities) account for 29% of total retail
spending, with the Delhi and Mumbai clusters contributing about 9%. Even the top-
72 cities account for 38% of total retail consumer spending, which highlights the
strength of rest of India that has 71% share. Major expansion in terms of retail
consumer spending is expected to come from India’s tier-2 cities.
In the last 5 years we can see a fluctuation in the sales growth of the brand. It was at
its peak in FY 2017-18, at 20% and fell by 3%in the following year. The gross
margin continued to grow gradually and reached 60% in FY 18, but dipped to 57.9%
in FY19. However, EBITDA grew  till FY 18 and remained constant in FY 19.
Annualized Sales per square feet has seen consistent growth, and has grown almost
16%. The bill size is also seen growth from Rs 1700 in FY 15 to Rs 2332 in FY 19,
which is almost 40% in the last 5 years.
11

14. Delivering latest fashion trends at sharp prices.
Strengthening additional differentiator categories such as lingerie (Wunderlove),
cosmetics (Studiowest) and athleisure (StudioFit) with trendy offerings.
Focus on latest fashion each week through a “fast fashion” anchored supply
chain.
Accelerated store expansion program to scale up reach.
Active management of store portfolio through multiple initiatives.
Progressing omni-channel proposition through integration between stores and
online.
During FY19, Westside continued to focus on key initiatives such as: 
An increase in the footfall as well as increase in the number of stores could be seen in the
graphs shown below. Not only that, it could be observed that the increase is gradually in a
decade. This shows that the efforts done by the brand have gone in the right direction as one
can see the number in the chart. Also, Chhattisgarh, Goa, Jharkhand and Odisha have
two stores each. Bihar, Haryana, Himachal, J&K, Nagaland & Sikkim have one store each.
FOCUS OF THE BRAND
IN FY 19
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15. Progressive upgrade of existing stores to the latest visual scheme.
“See it buy it” synchronization of offer, hotspots and open window presentation 
Aided by the approach, Westside registered 9% percent like-for-like growth in sales
in FY19. During the year under review, they pursued the following key initiatives
on this front: 
These initiatives continue to deliver encouraging results including growth in walk-
ins.
FOCUS OF THE BRAND
IN FY 19
13

16. SALES PER SQUARE FEET OF
BUSINESS AREA
OPERATING SANDARDS
An estimated revenue of 10.7 thousand Indian rupees per square foot was produced at
Westside. With an average store size of 17.5 thousand square feet the supermarket
chain had higher profitability.
Westside seeks to actively refresh its
offerings on an ongoing basis to
synchronize with the latest fashion
trends. This is made possible through
an on-going emphasis on leveraging its
supply chain model coupled with
rigorous reviews. As it emphasizes
speed across the value chain, shrinkage
cost is one of the bellwether measures
with respect to operating efficiency at
stores and distribution centers.Overall,
Westside continues to be a profitable
concept and has registered encouraging
results.
14

17. REVENUE (SALES)
Revenue is the amount a company receives from selling goods and/or
providing services to its customers and clients. A company's revenue, which is
reported on the first line of its income statement, is often described as sales or
service revenues. Hence, revenue is the amount earned from customers and
clients before subtracting the company's expenses. Revenue can also be
referred to as sales or sales turnover of a company.

Trent’s revenue grew 32 percent in the first six months of 2019-20—the
highest among its competitors’—while its operating margin was 17.7 percent,
according to its exchange filings. The company is well placed in the Indian
fashion retail industry to outperform, led by its focus on fast fashion and value
fashion, Antique Broking said in a recent report.

Nearly 85 percent of Trent’s revenue comes from the Westside store chain,
with the subsidiary’s growth boosting its performance. Westside’s same store
sales growth or sales growth at an existing location that has been in operation
for at least one year has not only been the largest but also the most consistent
in the past six quarters, according to Axis Capital. Its six-quarter average of
the metric is around 10.2 percent. Westside is also the only company whose
same-store sales growth hasn’t declined in the same period.

According to Edelweiss, could be attributed to the company’s focus on private
labels and enhancing the shopping experience. Westside, according to the
brokerage, derives nearly 97 percent of its revenue by selling private brands.

As it primarily focuses on selling private label brands. Share of private label
brands have improved significantly from 87% in FY15 to 97% in FY19.
Inhouse brands offer higher margins to etailers as they allow them to have
complete control across the value chain right from designing merchandise,
branding, sourcing, logistics, distribution, promotion, display, fixing price
points and retail margins. Its own brands like Wunderlove (Lingerie),
Studiowest (Cosmetics) and Bombay Paisley (fusion wear) have grown at a
rapid pace.
15

18. REVENUE (SALES)
The following is the the profit & loss A/C below of westside reflecting upon
the last five fiscal years of the sales turnover of the company:
As shown, in the profit & loss account of the brand, the revenue of the brand
has been increasing as per the report of 2014-15 to 2018-19 the brand has
reached from the figure of 1,358.00 Crores to 2,531.00 crores within these
five years and majority of the gain for the trent group has been received by the
overall performance of westside including their inhouse brands as well as
private brand of the store.
16

19. OPERATING PROFIT
Operating profit is the profitability of the business, before taking into account
interest and taxes. To determine operating profit, operating expenses are
subtracted from gross profit. Operating profit is a key number for managers to
watch as it reflects the revenue and expenses that they can control. 
In the fiscal year from 2018-19, Operating income during the year rose 21.9% on
a year-on-year (YoY) basis.The company's operating profit increased by 13.2%
YoY during the fiscal. Operating profit margins witnessed a fall and stood at
8.7% in FY19 as against 9.3% in FY18.
The following profit & Loss A/C table given below has the representation of the
operating profit of the five fiscal year from 2014-15 to 2018-19 0f the brand
‘Westside’.
As per the profit and loss account given above, states the rise of the operating profit
every year of the five fiscal years of the brand ‘Westside’ and rising as in 2014-15
the operating profit of the company was Rs. 54.89 Crore, in 2015-16 as Rs. 93.51 
crores and the company has gained constant rise in its operating profits as of now it
has been recorded as Rs. 272.38 Cr. in the last fiscal year 2018-19 and gaining the
maximum profit in comparison with the other competitor brands, such as Lifestyle,
Pantaloons and Shopper Stop.
17

20. PROFIT AFTER TAX
Profit After Tax is the total amount that a business earns after all tax deductions
have taken place. It is also seen as a measure of a company's profitability after all
its expenses have been deducted and can be fully utilised by the company to
conduct its business.
The following chart shows annual revenue of Westside second, third and fourth
quarter of the year 2019. The chart shows increasing revenue in each quarter
report.
The financial statistics (standalone) of the brand from the FY 2009-10 to FY 2018-
19 from Annual Report of Trent Ltd are shown in the chart below.
18

21. PROFIT AFTER TAX
The financial results of the brand comparing the FY 2018-19 and the previous
are shown in the table below. It also shows all the expenses, revenue, profits, etc.
Westside accounts for around 90 percent of the Company’s revenues. Aspirational
exclusive brands are the key differentiators of the business. As of March 2019,
Westside had presence with 150 stores across more than 70 cities and online reach
across India exclusively through TataCliq.
19

22. PROFIT AFTER TAX
The financial results of the brand comparing the FY 2018-19 and the previous
are shown in the table below. It also shows all the expenses, revenue, profits, etc.
Westside accounts for around 90 percent of the Company’s revenues. Aspirational
exclusive brands are the key differentiators of the business. As of March 2019,
Westside had presence with 150 stores across more than 70 cities and online reach
across India exclusively through TataCliq.
20

23. FINANCIALS
The profit and loss table of the company with standalone figures in crores is as
follows:
21

24. FINANCIALS
22

25. 10 Years: 18.91%
5 Years: 17.34%
3 Years: 20.38%
TTM: 30.60%
10 Years: 19.97%
5 Years: 37.29%
3 Years: 15.03%
TTM: 36.56%
10 Years: 20.11%
5 Years: 34.70%
3 Years: 26.45%
TTM: 38.02%
LOOKING FORWARD
From the study, it could be observed that Westside has introduced effectively
working elements in the retail market which is serving it in the form of more sale
and profit. The results are as follows:
COMPOUNDED
SALES GROWTH
COMPOUNDED
PROFIT GROWTH
STOCK PRICE
CAGR
RETURN ON
EQUITY
10 Years: 4.87%
5 Years: 6.11%
3 Years: 7.18%
TTM: 7.82%
Also, Westside is seeking to leverage the opportunity afforded by the Indian fashion
retailing space with the following guideposts:
23

26. Westside.
Trent limited. Available at
https://www.sharekhan.com/MediaGalary/Equity/Trent-Nov07_19.pdf
India’s - retailers per square foot.
The Westside.
A good lifestyle.
My Westside.
Investors.
Westside- business insight.
Trent Ltd.
Trent profit and loss account.
Trent Ltd.
Available at https://www.mbaskool.com/business-articles/finance/16935-westside-
business-insights-trends-and-future-plan.html
Avaialble at https://www.statista.com/statistics/1044581/india-retailers-per-square-
foot-revenue-by-brand/
Available at https://www.owler.com/company/mywestside
Available at https://economictimes.indiatimes.com/industry/services/retail/a-good-
lifestyle-helps-apparel-company-close-in-on-total-sales-of-2-
rivals/articleshow/71402289.cms?
utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
Available at https://www.owler.com/company/mywestside?
Available at https://www.westside.com/pages/investors
Available at https://www.mbaskool.com/business-articles/finance/16935-westside-
business-insights-trends-and-future-plan.html
Available at https://www.screener.in/company/TRENT/
Available at https://www.moneycontrol.com/financials/trent/profit-loss/t04
Available at https://www.moneycontrol.com/financials/trent/consolidated-
ratiosVI/T04#T04
REFERENCES
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