Reliance Retail net profit increases 6.2% to Rs 2,400 crore in Dec quarter

Ebitda from operations up 32.2%, revenue rises 18.6%

Reliance Retail on Friday reported a 6.2 per cent year-on-year (YoY) rise in net profit at Rs 2,400 crore in the December quarter of financial year 2022-23 (Q3FY23).

Its Ebitda (earnings before interest, taxes, depreciation, and amortisation) from operations increased 32.2 per cent YoY to Rs 4,657 crore. The country’s largest retailer’s revenue from operations increased 18.6 per cent YoY in Q3 to Rs 60,096 crore.

The conglomerate’s retail business continued its store expansion through the quarter and opened 789 new stores totalling an area of 6 million sq. ft.

In Q3, it witnessed the highest ever footfall at 201 million across formats and geographies. Reliance Retail also increased its warehouse space by adding another over 2.2 million sq. ft. during the quarter.

Its digital commerce and new commerce businesses grew 38 per cent compared with last year, and its contribution to revenue stood at 18 per cent.

“During the quarter, the consumer brands business launched several new variants in processed foods, beverages, spices and staples,” Reliance Retail said in its earnings release.

It also said the acquisition of Sosyo, Lotus Chocolate and the launch of the Independence brand would further strengthen the portfolio of the business.

JioMart also continued its growth momentum with an uptick in the non-grocery category’s contribution and broad-based growth across all town classes. JioMart strengthened its catalogue by 71 per cent quarter-on-quarter and it expanded its seller base by 83 per cent sequentially during the period.  It also strengthened its product offerings with acquisition of V Retail (Centro Footwear).

 

“Our performance during the quarter demonstrates the underlying strengths and efficiencies of our business model that enable us to serve our customers with excellence at all times. We remain steadfast in offering the best shopping experience across all our stores and digital platforms to deepen our bond with our customers and vendor partners,” Isha M Ambani, executive director, Reliance Retail Ventures, said, according to the company’s release.

Reliance Retail’s consumer electronics business witnessed a 45 per cent growth in revenue (excluding devices) on the back of higher footfalls and bill values.

Wider assortment, new launches, attractive offers and financing schemes drove customers to shop at its stores and digital platforms and the business saw double-digit growth across the categories of phones, TVs and appliances.

The fashion and lifestyle business saw revenue grow by 13 per cent YoY on the back of good demand in the festival and wedding season. Though the business witnessed broad-based growth across categories, winter wear was impacted by the delayed onset of winter.

Its online platform, AJIO, continued to ramp-up performance as it expanded its customer base by 33 per cent and catalogue size by 62 per cent YoY.

The premium brands business grew 38 per cent YoY. “With a focus on strengthening omni-channel experience, the business launched mono-brand websites for Tumi, Hunkemöller, and Pottery Barn during the period,” the company said.

The jewellery business grew 38 per cent YoY on the back of wedding and festive demand, especially during Dhanteras.

Revenue from the grocery business grew 65 per cent YoY due to growth in fruits and vegetables, staples, general merchandise, packaged food, and home and personal care categories.

Strong customer engagement through the festival season and premiumisation of assortment improved customer experience and drove higher average bill value, the company said.

In the pharmaceutical business, revenue grew 93 per cent compared to last year, led by growth across all channels.