Reliance Retail posts 23.4% increase in net profit; turnover up 53.4%

Reliance Retail, a subsidiary of Reliance Industries, saw its net profit jump 23.4% year-on-year (YoY) to Rs 2,259 crore in the December quarter of FY2021-22 (Q3FY22 ) with a 32 percent higher cash profit at Rs 3,277 crore.

The company’s revenue rose 53.4% ​​year-on-year to Rs 50,654 crore in the third quarter as gross revenue from all consumer baskets, excluding oil and connectivity, increased by 90% compared to the previous year.

“Retail business activity has normalized with strong growth in key consumer baskets following the festive season and as lockdowns ease across the country,” said Mukesh Ambani, President and CEO of RIL, commenting on the third quarter results.

The company also said in its statement that it had recorded unprecedented revenue across all consumer baskets, driven by the highest in-store sales ever and continued growth momentum in the digital and new commerce segments. .

He also said consumer electronics, apparel and footwear doubled in business on strong holiday sales, while grocery maintained its steady and solid double-digit growth momentum.

Reliance Retail’s Ebitda (earnings before interest, tax, depreciation and amortization) increased 52.3% year-on-year to Rs 3,522 crore, driven by a strong revenue recovery, operating leverage and favorable revenue mix contributed by growth in the fashion and lifestyle, consumer electronics and grocery segments, he said.

In the third quarter, retail added 837 stores, bringing its total number of stores to 14,412. It also added 73 warehouses and distribution centers across 2.3 million square feet. Its merchant partners quadrupled from a year ago, while its digital commerce orders doubled.

Reliance Retail’s consumer electronics stores posted strong double-digit growth with improvement in all operating metrics, the company said.

“Extended festive offers during Diwali, Black Friday and Christmas have grown in popularity with customers, leading to increased conversions and average invoice values. ResQ saw double-digit growth as the business continues to delight customers with faster installations and value-added services,” the statement read.

Reliance Retail also launched JioMart Digital, a consumer electronics merchant company.

The retailer said more than 50% of its shoppers come from Tier 2 cities and below.

In the fashion and lifestyle sector, it achieved its highest ever quarterly turnover with growth doubling compared to the previous year, helped among other things by the growth in the average values ​​of invoices which led to strong store performance.

Its online fashion retail brand, AJIO, also recorded new highs with three-fold revenue growth and it also increased its catalog 2x year-on-year by adding national and regional brands. and strengthening its own portfolio of brands in the value segment.

In its jewelry business, it continued its strong growth trajectory with double-digit year-on-year growth driven by new collections, while luxury/premium brands were multiplied by 2 with the recovery of stores in the centers sales and the rebound in attendance.

It launched several new store formats and opened 64 new partner brand stores in the third quarter and Reliance Brands signed partnerships with Valentino, La Martina and Starter. Urban Ladder was multiplied by 2 in Q3.

“As we look forward to the next quarter, what we are seeing is that there has been some volatility, which has come with the new Covid strain, but we believe we are well prepared to navigate through the challenges it poses,” Gaurav said. Jain, head of strategy and business development at Reliance Retail, after the earnings release.

“As the situation normalizes, we will continue to focus on accelerating growth momentum and also expanding. Some of the priority areas are to ensure that we continue to accelerate the pace of deployment of our new stores,” he added.

The retailer will also be looking to grow its digital commerce business across all platforms. This will increase the offerings and also refine the service capabilities.

Jain said: “The new business value proposition has been really well received across all businesses and we will continue to onboard merchants across all geographies and also increase business share as they continue to buy more. “

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