Spain's Inditex, which owns luxury fashion brand Zara, posted a loss of Rs 41 crore in India for the financial year ended March 31, 2021.
Its revenue also declined by 28.3 per cent to Rs 1,126 crore during the pandemic-hit 2020-21.
The company had reported a profit after tax of Rs 104.05 crore and a revenue of Rs 1,570.54 crore in the financial year 2019-20.
Zara operates in India through the association of its parent Spanish clothing company Inditex with the Tata group firm Trent Ltd - Inditex Trent Retail India Private Limited (ITRIPL). The Inditex group of Spain owns 51 per cent while Trent has 49 per cent.
"During the year under review, the Zara entity recorded revenues of Rs 1,126 crore and loss after tax of Rs 41 crore," said the latest annual report of the Tata group firm Trent Ltd.
Zara is presently operating 21 stores in India, in 11 cities.
"The incremental store openings for Zara continue to be calibrated with focus on presence only in very high-quality retail spaces," it said.
Trent has two separate associations with Inditex -- one to operate Zara stores and the other for Massimo Dutti stores in India. The entities essentially facilitate the distribution of Zara and Massimo Dutti products in India through their respective stores.
Meanwhile, Massimo Dutti, which operates three stores in India also reported a 49.3 per cent decline in its revenues of Rs 34 crore in FY21.
It had recorded a revenue of Rs 67 crore in the financial year ended on March 31, 2020.
Trent said the business of these entities is essentially limited to the distribution of Zara and Massimo Dutti products in India. Both the entities are required to source merchandise only from the Inditex Group and also the choice of product and related specifications are at the latter's discretion.
Zara competes with the likes of other foreign brands such as H&M, UNIQLO in India.