Reliance Retail on Friday reported a 27.4 per cent year-on-year increase in revenues at Rs 45,327 crore in the third quarter of FY20.
Reliance Retail on Friday reported a 27.4 per cent year-on-year increase in revenues at Rs 45,327 crore in the third quarter of FY20. During the quarter ended December 31, the company’s earnings before interest and tax, depreciation and amortization (EBITDA) showed an increase of 62.32 per cent year-on-year, to Rs 2,727 crore. “Amidst a cautionary spending environment, Reliance Retail has been able to win customer confidence through its strong value proposition, wide product offering and engaging shopping experience. Revenue growth was led by robust 35.7% growth in Consumer Electronics, Fashion & Lifestyle and Grocery segments combined,” the company said in a statement.
According to the company, overall segment gross sales growth has continued to be delivered through a balanced mix of healthy double-digit like-for-like sales from existing stores along with acquired new customers from a rapid expansion of stores across formats and geographies.
Reliance Retail operates multi-format stores including neighbourhood to the supermarket. The company has increased its count to 10,091 stores in approximately 7,000 towns in the country. In the second quarter of this fiscal, the retail arm of Reliance added 337 stores with two-thirds of its stores are operated in tier-II towns. The company claims its retail business has grown phenomenally, registering a seven-fold increase in revenue in the last six years and is now preparing to foray into e-commerce.
During the quarter, grocery business saw the launch of a new store concept, the ‘Smart Point’ which serves the everyday needs of customers covering fresh foods, grocery, pharmacy and assisted e-commerce. Moreover, the Consumer Electronics business opened its 400th large format Digital store whereas the Fashion & Lifestyle crossed the 2000 store milestone. “Across the consumption baskets, the performance was broad-based with Consumer Electronics, Fashion & Lifestyle and Grocery, all delivering strong double-digit growth (underpinned by healthy double-digit like-for-like sales growth) and margin improvement in tandem,” the company said in a statement.
Meanwhile, shares of Reliance Industries on Friday closed nearly 3 per cent higher ahead of the scheduled declaration of its December 2019 quarter earnings later in the day. The scrip of the country’s most valued firm jumped 2.79 per cent to close at Rs 1,580.65 on the BSE. During the day, it climbed 3 per cent to Rs 1,584.80. At the NSE, it gained 2.80 per cent to close at Rs 1,581. With the rise in its share price, the company’s market valuation also moved up by Rs 27,243.11 crore to Rs 10,02,009.11 crore on the BSE.