Reliance Retail, the country’s largest organised retailer, on Friday reported a 32% year-on-year growth in net profit toRs 3,165 crore for the December quarter (Q3FY24), driven by an-all round business performance in the festive period.
Revenue from operations rose 24% year-on-year toRs 74,373 crore, as segments such as grocery, fashion and consumer electronics saw a sales uptick during the October-December period.
The company achieved its highest-ever quarterly Ebitda (earnings before interest tax depreciation and amortisation) touchingRs 6,061 crore in Q3. This was a 30.1% y-o-y growth versus last year, when Ebitda came in atRs 4,657 crore. Sequentially, Ebitda was up 8.1%.
Q3 Ebitda margins widened by 40 basis points to 8.15%, driven by operating leverage and a consistent focus on cost management, Reliance Retail chief financial officer (CFO) Dinesh Taluja said in a post-results earnings call. Sequentially, Ebitda margin remained flat.
“We remain resolute in our commitment to bring high-quality products at great value to our customers with an engaging shopping experience,” Isha Ambani, executive director, Reliance Retail Ventures, said.
The company expanded its store network by opening 252 new stores in Q3, bringing the total count to 18,774 stores with a combined area of 72.9 million square feet by the end of the December quarter.
Reliance Retail recorded footfall of over 282 million across formats during the quarter, representing a 40.3% y-o-y growth. The total number of transactions rose 19.9% y-o-y to 320 million in Q3.
Grocery delivered 41% y-o-y growth, led by festive demand uptick. Fashion & lifestyle delivered a 28% y-o-y growth, led by higher footfalls and conversions as consumers shopped for festivities.
Consumer electronics delivered a 19% year-on-year growth on the back of higher basket value and improved conversions. “New launches, flagship models and wider assortment led to growth in phones, large appliances and televisions,” Taluja said.
JioMart delivered steady growth led by an increase in traffic and average order value as customers continued to shop across categories on the platform. JioMart also strengthened its catalogue, with the option count scaling up 84% versus last year and the seller base expanding by more than three times.
The company said that consumer brands such as Campa and Independence received good traction from trade channels and consumers during the quarter. Digital commerce and new commerce business continued to grow and contributed to 19% of revenue.