Reliance Retail (RRL), the country’s largest retail chain company, reported handsome gains amid a slowing consumer economy, for the April-June quarter. The retailer from multibillionaire Mukesh Ambani’s stable has recorded 19% jump in its net profit for the quarter, it informed the exchanges on Friday. For the quarter, its net profit stood at Rs 2,448 crore, up 19% from Rs 2,061 crore in the corresponding quarter a year go.
Revenue from operations grew 20.5% year-on-year (YoY) to Rs 62,159 crore. While earnings before interest, tax, depreciation and amortisation (EBITDA) from operations rose 25.6% to Rs 4,896 crore from Rs 3,897 crore in the April-June 2022 quarter, improving RRL’s EBITDA margin by 30 basis points yoy to 7.9%.
“Retail business delivered robust growth, with fast-paced store additions and steady growth in footfalls. The contribution of Digital and New Commerce initiatives is scaling up, delivering value to consumers and providing synergistic benefits to merchant partners,” said Mukesh Ambani, Chairman and Managing Director, Reliance Industries (RIL) in a statement. RIL owns RRL through its group company Reliance Retail Ventures (RRVL).
During the quarter, RRL management continued with their aggressive expansion for the retailer. While area under operation surged by 55.2% YoY to 70 million square-feet, it added nearly 406 stores over the previous quarter, taking its total store count to 18,446.
“Our performance has been resilient and aligned with our business goals. The sustained growth across consumption baskets has further consolidated our position as a market leader. We continue to innovate and invest in our stores and digital platforms to make shopping more engaging for our customers,” said Isha Ambani, Executive Director, RRVL.
According to the company, its topline growth was led by growth in grocery, consumer electronics (excluding Devices) and fashion & lifestyle divisions. In the quarter, RRL recorded highest ever footfalls at 249 million across formats. Its consumer electronics business, which delivered 14% YoY growth, was driven by “consumer engagement through category-led promotions and regional festivities leading to broad based growth across categories”, it said. The fashion and lifestyle business delivered a revenue growth of 15% YoY driven by pick up in store traffic and average bill value.
While it is the grocery business that lifted its top-line with 59% yoy growth, led by Smart and Smart Bazaar formats. “Non-food continues to grow rapidly with improving share in overall business. The business capitalised on the summer season with an uptick in several related categories such as ice-creams, cold drinks, and seasonal fruits like mangoes. Grocery new commerce continues to evolve with the business operating model synergising with Metro Cash and Carry India business to further bolster its value proposition," it said, adding that “initiatives are underway to integrate the Metro business with Reliance Retail”.