Reliance Retail, the retail division of Reliance Industries present across grocery, lifestyle and electronics space, registered revenue growth...
Reliance Retail, the retail division of Reliance Industries present across grocery, lifestyle and electronics space, registered revenue growth of 31.1% y-o-y at Rs 4,788 crore in the January-March quarter. The company attributed the rise to a strong value proposition, wide product offerings and a captive shopping experience.
For the entire fiscal, the revenue rose 21.2% to Rs 17,640 crore. The PBDIT stood at Rs 784 crore. “The business recorded a LFL (like-for-like) growth of up to 17% across various format sectors in the year,” the company said in a statement.
On a sequential basis, revenue rose 2.2%, while EBIT fell 21.8%. The company’s EBIT stood at Rs 104 crore in the fourth quarter compared with Rs 24 crore in the same quarter last year. In FY15, it stood at Rs 417 crore compared with Rs 118 crore last year, a rise of 253.4%. EBIT margins in the quarter stood at 2.2% and in the year it stood at 0.8%.
In FY15, the company added 930 stores and 0.9 million square feet of operating space across all their retail formats. As of March 31, the company had 2,621 stores across 200 cities, with over 12.5 million square feet space.
“Reliance Retail grew its presence through its partnership in this period. Partnerships with Marks & Spencer, Grand Vision and Payless Shoesource continued its pace of robust growth,” the company said.
A Morgan Stanley report on March 31 had said the company dosen’t have any major expansion plans in place and is now focusing on increasing profits as it moves ahead. The report also said that a possible foray into e-commerce could further strengthen the business.
Reliance Fresh recently launched e-commerce website called reliancefreshdirect.com and is currently only present in Mumbai and later expected to branch out to other cities as well.
In the last fiscal, Reliance Market continued to expand footprint and is now present across 43 locations across the country. It partners with kirana stores and small enterprises and serves over 1.5 million registered members.
Reliance Trends, the fashion and lifestyle segment Reliance currently has 200 stores across 100 cities while Reliance Digital, the electronic retail business, has 1,000 outlets in the country. To increase retail footprint, the company started smaller format stores called Digital Xpress Mini which specialises in selling mobile phones.