Reliance Retail Q3 net profit jumps 23.4% to Rs 2,259 cr

Reliance Retail, the retail arm of Mukesh Ambani-led Reliance Industries Limited (RIL), on Friday reported a 23.4 per cent on-year growth in its consolidated net profit at Rs 2,259 crore for the October-December quarter of FY22.

Reliance Retail has reported an all-time high revenue and EBITDA in Q3FY22. Consolidated gross revenue for the quarter was up 52.5 per cent Y-o-Y at Rs 57,714 for Q3 of FY22. Gross revenue from consumption baskets excluding Petro and Connectivity grew by 90 per cent over the previous year to Rs 33,714 crore in the quarter under review. 

"All time high revenues were recorded across all consumption baskets driven by highest ever store sales and sustained growth momentum in digital & new commerce. Consumer Electronics and Apparel & Footwear doubled their business on the back of strong festive sales while Grocery sustained its consistent and strong double-digit growth momentum," read an official statement from the firm. 

EBITDA was up 23.4 per cent Y-o-Y at Rs 3,822 crore. EBITDA from operations grew by 52.3 per cent Y-o-Y. The growth was led by strong revenue recovery, operating leverage and favourable revenue mix contributed by growth in fashion and lifestyle, consumer electronics and grocery, explained the firm. 

Cash profit for the quarter was Rs 3,277 crore, up 32 per cent from the same quarter last year. 

During the quarter, the business added 837 stores taking the total count to 14,412 stores and 2.3 million sq ft. of warehousing space to bolster its service capabilities. 

"Business continued to strengthen its Digital and New Commerce capabilities. Merchant partnerships and Digital commerce orders scaled new highs with merchant partners growing 4x Yo-Y while digital commerce orders growing 2x Y-o-Y," it added. 

Reliance Retail had acquired Jaisuryas, a grocery chain in Southern India; Amante, a women's intimate wear brand and Kalanikethan, a women's saree and ethnic wear brand during the October-December quarter. 

The business had entered into strategic partnerships with investments in Ritika Pvt Ltd that owns - Ritu Kumar and allied brands and Manish Malhotra's eponymous brand.

RIL's retail arm has also invested $200 million in Dunzo, an Indian last-mile delivery and quick commerce player. The firm had acquired 25.8 per cent stake on a fully diluted basis. 

Also read: RIL Q3 results: Net profit rises 41.5% to Rs 18,549 cr

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