Reliance Retail Q3 profit surges 88% to Rs 1,830 crore; generates 50,000 new jobs

Reliance Retail, the retail arm of Mukesh Ambani-led Reliance Industries Limited (RIL), has delivered a record profit in an operating environment that continued to remain challenging with sporadic COVID related restrictions and local issues. The retail major reported 88.1 per cent quarter-on-quarter growth in consolidated net profit at Rs 1,830 crore for third quarter ended December 31, 2020. The company added over 50,000 new jobs during April-December period.

Revenue for the quarter was down 7.9 per cent at Rs 37,845 crore, impacted by the challenging operating conditions and the transfer out of the fuel retailing business to the RIL-BP JV. The decision to convert Reliance Market stores to fulfilment centers to enable city expansion of new commerce also impacted revenues.

On the operation front, Earnings before Interest, Taxes, Depreciation, and Amortisation (EBITDA) for the quarter was Rs 3,087 crore, registering a Q-o-Q growth of 53.9 per cent. This was led by near doubling of fashion and lifestyle earnings, continued benefits from cost management initiatives and a boost from higher investment income of Rs 775 crore.

Also Read: RIL Q3 results: Profit rises 12.5% to Rs 13,101 crore, revenue down 22%

Commenting on the results, Mukesh Ambani, Chairman and Managing Director, Reliance Industries Limited said: "At a time when the Indian economy is poised for a confident recovery, we at Reliance are humbled that we have been able to contribute to it with our company's impressive performance in the third quarter of FY21. We have delivered strong operational results during the quarter with a robust revival in O2C and retail segments, and a steady growth in our digital services business. I am proud that Reliance has employed 50,000 more people since March 2020."

The cash profit for the quarter was Rs 2,482 crore, up by 76.3 per cent on sequential basis.

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Meanwhile, Reliance Industries Limited (RIL) on Friday reported 12.5 per cent year-on-year growth in consolidated net profit at Rs 13,101 crore for the third quarter ended December 31, 2020, on the back of strong rebound across all businesses. Consolidated revenue of Mukesh Ambani-led oil-to-telecom conglomerate fell by 22 per cent to Rs 128,450 crore in the quarter under review as compared to Rs 160,447 crore in the year-ago period.