Reliance Retail pre-tax profit jumps 203%

By: | Published: July 28, 2018 4:05 AM

The Mukesh Ambani-owned Reliance Retail on Friday posted a 203% year-on-year increase in profit before depreciation, interest and taxes (PBDIT) to Rs 1,206 crore in Q1FY19, on the back of rapid store expansion and higher sales.

reliance retail, reliance, mukesh ambaniReliance Retail has now a reach across more than 5,200 towns and cities, with 8,533 stores, including 4,530 Jio Points.

The Mukesh Ambani-owned Reliance Retail on Friday posted a 203% year-on-year increase in profit before depreciation, interest and taxes (PBDIT) to Rs 1,206 crore in Q1FY19, on the back of rapid store expansion and higher sales.

Revenue for the quarter grew by 123.7% to Rs 25,890 crore. This is the third consecutive quarter recording over 100% year-on-year revenue growth for Reliance Retail. Mukesh Ambani, chairman, and MD, Reliance Industries, said, “Our consumer businesses continue to scale new highs and now account for nearly 21% of consolidated segment ebitda. Retail business revenues have more than doubled and ebitda has trebled on a y-o-y basis. Jio added a record number of subscribers, highlighting the compelling technology and value proposition that Jio offers vis-à-vis other networks.”

Reliance Retail’s grocery stores led by Reliance Smart and Fresh have recorded a robust growth backed by growth in staples, fruits and vegetables, and women and personal care categories.

Two thirds of Reliance Trends stores are located in tier II and III cities and are recording faster growth compared to metro cities. Reliance Retail’s strategy of creating focused store concept for women — Trends Woman — has now expanded to 23 stores across 12 cities. In the quarter, Reliance has launched its first Trends Man store at Vijaywada.

Reliance Retail has now a reach across more than 5,200 towns and cities, with 8,533 stores, including 4,530 Jio Points. The company now has 18.6 million sq foot space operational, compared to 13.8 million sq foot space a year-ago.

Ajio.com, the online arm of Reliance Retail, saw 2.2 million app downloads during the quarter. The company claimed that an average customer visits Ajio mobile app 6 times in a month and repeat customers contribute two-thirds to the revenue. The site currently features over 75,000 options, compared to 37,000 options a year ago.

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