Mukesh Ambani -owned Reliance Retail on Monday reported 65.6% increase in profit before depreciation interest and taxes (PBDIT) year-on-year to Rs 366 crore in Q4FY17.
Mukesh Ambani -owned Reliance Retail on Monday reported 65.6% increase in profit before depreciation interest and taxes (PBDIT) year-on-year to Rs 366 crore in Q4FY17. For the full year FY17 the PBDIT grew 40.4% to Rs 1,203 crore, driven by growth across all consumption baskets, the company said in a statement.
Revenue for Q4FY17 grew 83% year-on-year to Rs 10,332 crore. Revenues for full year FY17 grew by 60.2% year-on-year to Rs 33,765 crore from Rs 21,075 crore. Key revenue growth drivers for the year were digital and petroleum retailing segments. EBIT margin for Q4FY17 was 2.40% compared to 2.3% year-on-year. For the full year FY17 EBIT margin was 2.3% compared to 2.4% year-on-year.
Gaurav Jain, head-corporate, business development, Reliance Retail, said, “Demonetisation had positively impacted our food business and digital payments grew by more than 100%.” Anurag Mathur, partner at Pricewaterhouse Cooper said, “Post demonitisation initially retailers witnessed slight impact but sales mainly of grocery retailers grew. The last three months have been good for most retailers.”
Reliance Retail consolidated its network of Reliance Fresh and Smart stores in core cities to strengthen market share and improve sales and process efficiencies. In February 2017, FE reported that the company has shut around 60 loss making stores which includes mostly Reliance Fresh stores and few Reliance Smart stores to reduce loses.
Arvind Singhal, chairman, Technopak, said, “The growth momentum of the company is expected to continue as Reliance Retail has been consistently focusing on expanding profitable formats and shutting loss making stores. The last few years Reliance Retail has been consistently reporting improvement in turnover and margins.
Further, the company plans to add another 500 outlets across segment in 2017-18. During the quarter, Reliance Retail added 63 stores across various store concepts. At the end of the year, Reliance Retail operated 3,616 stores across 702 cities with an area of over 13.5 million square feet. Reliance Retail added 371 stores across various store concepts during FY 2016-17.
Reliance Retail, operates cash and carry chain Reliance Market and continued additions to its store network, launching a 50,000 sq ft store at Amritsar. Reliance Market serves over 2.5 million registered members. Reliance Retail operates the largest consumer electronics store chain in India through a network of 1,996 Reliance Digital and Jio stores. Reliance Digital saw robust growth across all categories aided by strategic planning, targeted promotions, differentiated assortment and an engaging store experience.
The Fashion and Lifestyle category delivered strong performance in the fourth quarter. Reliance Retail added 24 new Trends stores during the quarter and operates 344 stores, making it the largest fashion chain in the country, the company statement said.
During the quarter, Reliance Retail expanded its women wear fashion offering by launching Trends Woman, a store concept for shoppers looking for trendy, high-fashion and well-curated collections of Indian wear.
During the quarter, Reliance Jewels launched ‘Aavaran’, a first of its kind unique product aimed at enhancing women safety. The product has a technology embedded gold or silver pendant, which can alert up to 5 guardians with the press of a button, the company statement said.