Increase in PBDIT was because of growth in digital, fashion & lifestyle and petroleum products.
Reliance Retail, the organised retail arm of Reliance Industries, on Friday reported a 68.2% year-on-year jump in its pre-tax profit at Rs 444 crore for the second quarter ended September 30, 2017. The company had reported a PBDIT (profit before depreciation and income tax) of Rs 264 crore in the year-ago period.
The increase in PBDIT was because of growth in digital, fashion and lifestyle and petroleum products.
Reliance Retail’s revenue in the quarter under review went up by a whopping 81.3% to Rs 14,646 crore, as against Rs 8,079 crore in the same period last year.
The company witnessed strong performance across the board during the quarter despite macroeconomic headwinds. Anticipating tax revisions as a result of GST implementation, consumers advanced discretionary spending on many categories, the company said in a statement.
During the GST roll-out, there were supply disruptions for a short period as manufacturers were clearing old inventory. Advance inventory planning and strong vendor relationships helped tackle stock-outs during the GST implementation period, thus mitigating revenue loss, said the statement issued by the company.
During Q2, Reliance Retail added 45 stores across various store concepts and strengthened its distribution network for consumer electronics. Extending its omni-channel presence, Ajio.com now has physical presence across 363 Reliance Trends stores. As on September 30, Reliance Retail operated 3,679 stores across 750 cities.
Reliance Fresh and Smart stores continued to focus on deep localisation and product premiumisation. During the quarter, several new products across personal care and staples were launched under the company’s own brand. Own brands contributed up to 23% of sales in active categories.
Reliance Trends continued to focus on store opening and added 30 new stores in 2QFY18, taking the total store count to 394 with presence in 201 cities. In the quarter, Reliance Trends launched the cosmetics category in 10 stores with participation from national and international brands. The category will be extended to other stores in a phased manner.
Project Eve, a store concept positioned for the mid-to-premium segment, launched two new stores in Bangalore and Chennai during the quarter.
Project Eve witnessed strong customer acceptance of own labels that contributed to over 50% of store sales.
In the reviewed quarter, Reliance Retail acquired a 40% stake in Genesis Luxury Fashion, which operates a portfolio of brands such as Armani, Burberry, Coach and Michael Kors, among others.