BENGALURU: The Tata group’s department store operator Trent Limited spent the second highest amount of Rs.8.56 crores in Q3-2014 amongst the preceding seven quarters towards advertising and sales promotion (Ad Spend). Earlier, during Q3-2013 the company had an ad Spend of Rs 10.16 crore, the highest across seven quarters from Q1-2013 to Q3-2014. (Note : Rs 1 crore = Rs.100 Lakhs = Rs 10 million = Rs.100,00,000).

Trent Limited was established in 1998 as a part of the Tata group. It operates the retail store chain Westside. In 2004 the company ventured into the hypermarket business with Star Bazaar. Also, Trent Ltd acquired a 76 per cent stake in the books and music retail store chain Landmark.

In terms of percentage of Operating Income (Op Inc), Trent Ltd Ad Spend shows a downward linear trend. In Q3-2014, Ad Spend was 3.30 per cent of Op Inc., while in the year ago quarter it was 3.94 per cent (the highest in terms of value and percentage of Op Inc over the seven quarters under consideration). Trent Ltd., lowest quarterly Ad Spend was in Q4-2013 at Rs  4.02 crores.

However, despite the downward linear trend in Ad Spend in terms of percentage of Op Inc, in value or rupee terms, the linear trend is upwards because of the increase in Op Inc. Please refer to Figures A and B.

The company’s PAT too is moving upwards linearly, both in terms of percentage of Op Inc as well as in rupee or value terms. The company reported the highest PAT across the seven quarters under consideration in Q3-2014 at Rs 23.49 crore, while the lowest PAT across the seven quarters was in Q2-2013 at a shade under Rs 9 crore. (Refer Figure B below)

As mentioned above, the company’s Op Inc has been moving linearly upwards, with the quarter ended December 2013 reporting the highest figure at Rs 282.43 crore, while the lowest Op Inc reported during the seven quarters under consideration was in Q1-2013 at Rs 218.71 crore. Correspondingly, the company’s Total Expenses (Tot Exp) figure is also following a linear upwards trend and Tot Exp has been highest at Rs 268.95 crore in Q2-2014 and the lowest in Q1-2013 at Rs 214.44 crore. Please refer to Figure C below.

Figure D shows the Q-o-q change in Op Inc, PAT and Ad Spend. The change in Q1-2013 is in relation to Q4-2012.