Reliance Retail, the retail arm of diversified conglomerate Reliance Industries, on October 27 reported a 21 percent year-on-year (YoY) increase in net profit to Rs 2,790 crore in the quarter ended September.
Gross revenue stood at Rs 77,148 crore, rising 18.8 percent YoY from Rs 64,920 crore in the corresponding quarter last year, the company said. This is led by well-rounded growth across consumption baskets.
Grocery and Fashion & Lifestyle businesses maintained strong growth momentum while Consumer Electronics had a steady performance despite festive period falling in 3Q FY24.
Reliance Retail posted an EBITDA of Rs 5,820 crore, which was up by 32.2 percent on a Y-o-Y basis. EBITDA margin from operations on net sales was at 8.1 percent, up 70 bps Y-o-Y driven by operating leverage and continued focus on cost management.
“I am delighted to report that we have delivered yet another quarter of stellar performance and achieved an all-time high across financial matrices. The performance is a testament to our customer-centric approach that defines Reliance Retail and we look forward to serving our customers this festive season with renewed optimism and enthusiasm.” said Isha M. Ambani, Executive Director, Reliance Retail Ventures Limited.
The company opened 471 new stores during the quarter, bringing the total number of stores to 18,650, covering an area of 71.5 million sq ft. The quarter saw a 40.5 percent Y-O-Y increase in footfalls, reaching over 260 million across all formats. Meanwhile, revenue from Digital Commerce and New Commerce businesses rose, accounting for 19 percent of the total revenue.
Global esteemed investors expressed renewed trust in Reliance Retail’s vision, execution skills, and value generation. The company successfully raised Rs. 15,314 crore in the recent funding round from these prominent investors. On 25th October 2023, Reliance Retail finalized the transfer of assets to a warehouse InvIT entity for a total of Rs. 5,150 crore. This asset value was recorded under Other Financial Assets as of 30th September 2023.
The Consumer Electronics division reported an 11 percent growth from the previous year. The “Digital India Sale” on August 15th witnessed a 23 percent year-on-year growth, boosted by exclusive product ranges, new introductions, and enticing offers. Meanwhile, New Commerce grew its merchant partnerships by 44 percent year-on-year, with phones and high-end televisions experiencing substantial growth.
Fashion & Lifestyle business delivered 32 percent Y-o-Y growth. Offline business delivered robust growth despite festive season falling entirely in the next quarter.
Grocery saw a record 33 percent year-on-year growth, primarily driven by the Smart and Smart Bazaar formats. Festivals like Raksha Bandhan, Onam, Janmashtami, and Ganpati observed robust shopping, especially in gift packs and festive categories.
Consumer brands experienced growth, primarily in beverages, general merchandise, and staples. The business emphasized expanding distribution in the General Trade channel, resulting in a fourfold year-on-year revenue increase. Beverages saw a sevenfold revenue boost year-on-year, with ‘Campa’ gaining popularity among traders and consumers. To leverage the ICC World Cup event, ‘Campa Cricket’ was introduced.
JioMart continued to be on a sustained growth path with robust increase in traffic and average bill value. The platform also strengthened its catalogue with option count growing threefold over last year and seller base expanding by twofold over last year.
“Reliance Retail has continued to rapidly expand its offline as well as online presence, while adding to its already impressive range of products and offering. We are providing a fresh and friendly shopping experience across our seamless ecosystem. The strength and diversity of our Retail business model is consistently delivering robust performance,” said Mukesh D Ambani, Chairman and Managing Director, Reliance Industries Limited.
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