Reliance Retail Q1 results: Reliance Retail Q1 results: Profit before tax up 80% to Rs 1,941 crore


New Delhi: Reliance Retail on Friday announced a 79.88% increase in pre-tax profit to Rs 1,941 crore for the first quarter ended June 2021. The retail arm of Reliance Industries Ltd (RIL) had posted a Profit before taxes or EBITDA (earnings before interest, taxes, depreciation and amortization) of Rs 1,079 crore in the April-June quarter a year ago.

Revenues from RIL’s organized retail segment operations during the quarter amounted to Rs 33,566 crore, up 19.04% from Rs 28,197 a year ago.

While its gross revenue, which includes the value of sales and services, rose 21.90% to Rs 38,547 crore in the first quarter of fiscal year 201-22 from 31,620 crore of Rs for the corresponding quarter of the last fiscal year.

“Net profit for the quarter was Rs 962 crore, up 123.2% year-on-year,” he added.

However, sequentially, Reliance Retail’s gross revenue in April-June fell 18.09% to Rs 38,547 crore, from Rs 47,064 crore in the January-March quarter due to restrictions on store operations during the second wave of Covid-19.

RIL President and CEO Mukesh Ambani said, “COVID-related restrictions on store operations during the quarter impacted our retail operations and profitability. This is a temporary phenomenon.

“We have remained focused on sourcing basic necessities including food, groceries, health and hygiene items through a combination of online and offline channels. We have stepped up our efforts to create partnerships with small merchants and digital engagement with consumers. This creates a new and inclusive growth model. I have no doubts that retail is poised to create exponential value and growth, ”he said.

During the quarter, store expansion was limited as the company opened 123 stores, bringing the total number to 12,803, he said.

“More than 700 other planned stores will come into operation as the curbs are lifted,” he added.

The area of ​​retail operations operated by Reliance Retail also increased 18.96 percent to 34.5 million square feet from 29 million square feet in the corresponding quarter.

In addition, Reliance Retail also stepped up its partnerships with digital commerce companies and merchants, which helped it achieve 20% of sales in the wave-hit second quarter.

“The focus on scaling up digital commerce and partnering with merchants helped partially mitigate the loss of business due to store closures. These flows contributed 20% of retail sales over the course of the year. of the quarter, “he said.

Store operations were disrupted throughout the quarter starting in mid-April and after the second week of June there were sporadic signs of easing with continued restrictions varying by geography.

“Operational efficiency was affected due to network restrictions as stores were operating at 70%, 25%, 38% of normal working hours in April, May and June respectively,” he said, adding “retail stores and digital commerce could only sell basic necessities for most of the quarter.”

On sales performance, the company said the grocery store was resilient, connectivity maintained its consistent performance but consumer electronics and fashion and lifestyle saw significant growth given an operating environment. less restrictive compared to the corresponding quarter of the previous year.

New businesses such as Pharmaceuticals, which the company entered after acquiring Netmeds, Reliance Retail said it “continues to expand its portfolio and saw 60% growth in orders from the previous quarter. Hyperlocal capacities have been extended to more than 150 stores for the same deliveries per day.

While Zivame saw double digit growth from the previous quarter despite challenges on the supply side.

Urban Ladder’s daily online outbound orders increased 2.5 times from last quarter. She developed a video call-assisted sales channel and launched a multi-brand home furnishings and home decor business in 40 cents. -categories, “he said.

Reliance Retail has invested in online pharmacy Netmeds, online furniture retailer Urban Ladder and online lingerie retailer Zivame, further strengthening its presence in the growing e-commerce segment.

According to the company, the company remains “strongly focused” on increasing its capabilities across all channels, building its compelling proposition for customers and merchant partners, and developing its product portfolio to stay on par with it. emerging preferences.

“While the current operating environment is uncertain, we remain cautiously optimistic and determined to restore the strong growth momentum that was seen before the pandemic, as operating restrictions are lifted,” he said.

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