Customer demand should rebound strongly, possibly from Q2 onwards, Trent Chairman Noel N Tata has told PTI.
Though he said he was “cautiously optimistic” on the medium-term outlook, with growth drivers such as favourable demographics, increasing per capita and disposable income, and growing consumption, India is expected to return to a strong growth trajectory, despite uncertainty over near-term outlook, he added.
“While we cannot predict how quickly we will see the back of this crisis, there is a reason to believe that we will see a transition out of this pandemic phase. And when it does abate, customer demand should rebound strongly, possibly starting in the second quarter,” he said.
“Our expectation is for resumption of economic activity in phases and gradual return of normalcy over the next few months, as we experienced in 2020,” Tata added.
Tata Group’s retail arm Trent posted revenues of Rs 2,592.96 crore for FY21 — 25 per cent down from Rs 3,485.98 crore of FY20.
“Our expectation is that operating performance will recover fully over the next year. This expectation is basis the recovery witnessed in the last financial year post the national lockdown and also, the accelerated rollout of the vaccination program. We do not foresee any continued adverse impact in the medium to long term on the business operations,” the company said in its FY21 earnings statement.
Referring to the disruptions emanating the devastating second wave Covid-19 in the current financial year, it added, “The company’s financial performance for the current quarter and year has been impacted by the Covid 19 related developments. Given the circumstances, the results for the current quarter and year are not comparable with that of the corresponding quarter and previous year.”