Reliance Retail profit up 114% for April-June quarter

The company’s revenue during the period was the best ever at Rs 58,554 crore, which was up 52% year-on-year.

Reliance Retail profit up 114% for April-June quarter
Reliance said that it remains cautious due to inflationary concerns.

The retail arm of RIL, Reliance Retail’s net profit during the April-June quarter jumped 114.2% year-on-year to Rs 2,061 crore. The company’s revenue during the period was the best ever at Rs 58,554 crore, which was up 52% year-on-year. The company’s operating Ebitda increased 180.4% to Rs 3,897 crore with a 350 bps improvement in the margin at 7.6% compared to 4.1% in the corresponding quarter of the previous year. This was led by higher contribution from Fashion & Lifestyle and Consumer Electronics and growing operating leverage with strong LFL growth over last year across consumption baskets.

The company said that it witnessed its first quarter without any operating disruptions since the onset of Covid and consumer sentiments improved as people indulged in festivities, shopping and leisure activities, Reliance Industries said in earnings briefing. However, the company said that it remains cautious due to inflationary concerns.

The company said that higher retail footfalls also led to better margins for the June-ended quarter. The business recorded 175 million footfalls during the quarter which were 19% above pre-Covid levels as consumers returned to stores. The increased footfalls and digital visits translated to 220 million transactions in Q1FY23, a growth of more than 60% over pre-Covid levels, the company said in the briefing.

The business opened 792 new stores during the quarter with an area of 45.5 million sq ft, up from 34.5 million sq ft last year.
The company’s daily orders on digital commerce platforms also increased 64% y-o-y as stores returned to normal operations and as merchant base improved 3 times over last year.

Reliance Retail acquired Catwalk, women’s footwear brand and has acquired the India franchise rights for Sunglass Hut, a multi-brand premium eyewear retailer. The company has also formed a joint venture with Plastic Legno SPA’s by acquiring a stake in the toy manufacturing business in India.

It also signed a franchise agreement with GAP, an American Fashion brand, Tod’s, an Italian luxury lifestyle brand and Pret A Manger, a fresh food & organic coffee chain during the quarter. The company said that it would continue with store expansion,  accelerate merchant onboarding and would also scale up new businesses.

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