Operating income for the December quarter stands at Rs 2,727 crore, up 62.3%.
The retail business of India’s largest conglomerate, Reliance Industries, crossed the Rs 45,000-crore revenue mark in the December quarter. Net profit for the third quarter doubled annually to `1,757 crore, backed by the addition of 456 new stores.
Reliance Retail registered a year-on-year revenue growth of 27.4% from its organised retail business, at Rs 45,327 crore, led by 35.7% growth in consumer electronics, fashion and lifestyle and grocery segments.
Amid slow economic growth, operating income from RIL’s retail segment grew 58% year-on-year to Rs 2,389 crore, while the operating margin grew 110 basis points annually to 5.3% y-o-y.
With the addition of the new stores, Reliance Retail now operates 11,316 stores across over 7,000 towns, covering an area of over 26 million sq ft. Footfall across stores increased 26.6% annually to over 17.6 crore.
Meanwhile, online store presence also grew for the company. “AJIO continues to make good progress as web/app visits grew 78% year-on-year, and the increased assortment enabling the number of orders double during the quarter,” the company said in a release.
Operating income for the quarter stood at Rs 2,727 crore, up 62.3% year-on-year. Within this, operating margin for the consumer electronics, fashion & lifestyle and grocery business grew 160 basis points to 9.6% for the December quarter.
“Retail business continues with strong performance with 17% q-o-q growth in its Ebitda. We believe that a likely reduction in consolidated debt and value unlocking from the retail and digital services businesses would be a re-rating catalyst for RIL,” said Abhijeet Bora, senior research analyst, Sharekhan by BNP Paribas.