Reliance Retail’s consolidated net profit in 3QFY23 was up 6.2% year-on-year to Rs 2,400 crore for the quarter ended December on the back of improved sales and margin improvement. Revenue from operations grew 18.6% on-year to Rs 60,096 crore as the retail segment benefitted from improved footfalls, festive season and store expansion.
Operating margin was up 70 basis points year-on-year at 7.7%. The improvement in operating margin came in from channel sales, operating leverage and efficiencies, the company said.
The company said this quarter it saw highest ever footfalls at 201 million across formats and geographies, a growth of 25% year-on-year as this was the first festive period after Covid, the company said.
However, the firm said that consumer sentiment turned cautiously optimistic with discretionary spends impacting post festival season.
During October-December, the business expanded its physical store network with 789 new stores, with total store count now at 17,225.
During the period, consumer brands business grew 2 times as the company launched several new variants in processed foods, beverages, spices and staples.
Acquisition of Sosyo, Lotus Chocolate and launch of Independence brand would further strengthen the portfolio of the business, the company said. It added that it is strengthening its brand portfolio to cater to the widest customer base.
Among other business segments, Reliance Retail’s consumer electronics business grew 45% year-on-year in revenue with growth across categories of Phones, TVs, and Appliances.
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Fashion and lifestyle delivered a revenue growth of 13% year-on-year, led by festivals and wedding season. Business witnessed broad based growth across categories but notably men’s formals, women’s Indian wear, kids wear and footwear did well. However, winterwear was impacted due to delay in the onset of winter season.
Grocery business delivered revenue growth of 65% year-on-year, led by broad based growth in categories of fruits and vegetables, staples, general merchandise and packaged food . Strong customer engagement through Bestival festive sale and premiumisation of assortment improved customer experience and drove higher average bill value.
Owned and licensed brands sales were up 100% year-on-year with increase in merchant base and increased wallet share from onboarded merchants. The premium brands business saw a 38% growth year-on-year led by higher footfalls and new store openings. The company said that JioMart saw broadbased growth across all town classes, but tier 2and beyond towns grew the fastest. It expanded its catalogue expanded by 71% quarter-on-quarter with uptick in non-grocery category contribution.