In fact, the “higher contribution from consumer businesses, which include both retail arm and telecom business via Reliance Jio, more than offset weakness in refining and petrochemicals businesses, Reliance announced.
Mukesh Ambani’s Reliance Retail is growing faster than rival retail companies even when the FMCG industry reels under the ongoing slowdown, the company announced in a statement. “Despite a slowdown in the FMCG and consumer sector, Reliance Retail continues to grow faster than every other player,” the company announced during Q1 results launch. Reliance’s retail arm has over 100 million registered customers and 150 million footfalls. With expansion across geographies, formats and verticals, the retail arm of RIL has recorded a revenue growth of 48% on a yearly basis and EBITDA growth of 70% YoY. In fact, the “higher contribution from consumer businesses, which include both retail arm and telecom business via Reliance Jio, more than offset weakness in refining and petrochemicals businesses, Reliance announced.
Reliance Retail’s revenue growth was driven by a spike in revenue gathered from Digital Services and Retail business. While the former witnessed a hike of 55% YoY, the later also saw an increase by 48% YoY. The company’s retail arm has been helped by customer value proposition and insights into consumer preferences, Reliance announced. Along with this, Reliance Retail has an edge over others due to its customer-centric approach, sourcing and operating cost advantage and benefit of operating leverage.
Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited said that the company’s first quarter earnings were strong despite weak global macro-economic environment and challenging hydrocarbon market conditions. Reliance Industry Limited’s downstream businesses also exhibited strong performance in an environment of slower demand growth and incremental supplies.
Reliance Retail has been adding new stores and geographies at a high rate and has opened 265 stores during the quarter. Its grocery stores led by Reliance Fresh, SMART and Reliance Market also recorded growth due to new store expansion and volume growth in existing stores. Reliance serves almost all the major retail categories such as electronics, fashion and lifestyle and jewellery.