Reliance Retail, which runs some 1,700 outlets in the country, posted a net profit of Rs 175.52 crore for FY14 — the first year of profitability since it began operations in 2006. The company had posted a net loss in FY13, says a filing with the Registrar of Companies.
Reliance Retail is one of the few big organised retailers to have managed a profit. Other operators, like Aditya Birla Retail, Spencer’s Retail and Star Bazaar, are still struggling with losses.
In FY14, while Aditya Birla Retail’s losses grew to Rs 596 crore from Rs 583 crore in the previous year, Spencer’s posted a Rs 165.8- crore net loss. Although RPG Group-owned Spencer’s has managed to reduce losses, the company is yet to make a profit.
In June this year, RIL chairman Mukesh Ambani had reiterated the company’s position to remain invested in the retail business. Ambani was optimistic on Reliance Retail’s potential to drive growth for its parent company. “In coming years, retail will emerge as a major growth engine for our consumer business,” he told shareholders during RIL’s annual general meeting.
Reliance Retail operates through more than half-a-dozen brands like Reliance Fresh, Reliance Footprint, Reliance Trends and Reliance Digital in 146 cities.
Arnab Dutta