With the easing of COVID-related restrictions, retail business' operating days available jumped from 61 percent last quarter to 89 percent (Image: Shutterstock)
Reliance Retail, the retail arm of oil-to-telecom behemoth Reliance Industries, posted an 18 percent increase in its revenue at Rs 45,426 crore for the quarter ended September 2021 as compared to Rs 38,547 crore logged in the previous quarter.
On a YOY basis, revenue grew by 11 percent from Rs 41,100 crore.
EBITDA jumped 50 percent to Rs 2,913 crore from Rs 1,941 crore in the previous quarter. On a YOY basis, it increased by 45 percent from Rs 2,006 crore.
The cash profit for the company came in 62.9 percent higher on a YOY basis at Rs 2,293 crore while the net profit jumped 74 percent to Rs 1,695 crore compared to Rs 973 crore in the previous year.
The retail business got a big boost with the easing of COVID-related restrictions due to which the operating days available jumped from 61 percent last quarter to 89 percent. This ensured recovery in footfalls which recovered to 78 percent of pre-COVID levels as compared to 46 percent last quarter.
Digital and new-commerce business segment grew 2.4 times on a YOY basis on the back of record orders across platforms especially RJio & JioMart. Strong double-digit growth was witnessed in the consumer electronics business which was aided by an improved operating environment and opening of mall stores.
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Digital platforms and new merchant partnerships helped the fashion and lifestyle business achieve highest ever quarterly revenues which more than doubled this quarter compared to last year.
Ajio was also able to ramp up its business by adding expanding its product portfolio and strong execution, which helped double its revenues this quarter.
The grocery business continued to post double-digit growth as the stores witnessed higher operational hours and resumption of sales in non-essential categories.
Smart stores crossed the milestone of 400 stores across the country out of which 200 stores have been launched in the last two years. JioMart expanded its presence to 249 cities, and kirana partnership and activation scaled up to 20 times over last year.
The performance of new businesses such as pharma, Zivame, and Urban Ladder was very robust and they witnessed strong double-digit growth this quarter.
Forging New Partnerships
The business entered into a master franchise agreement with 7-Eleven Inc., a leading convenience store player globally, and launched its first store in Mumbai with plans to scaling it across the country.
Reliance Retail back to pre-COVID levels led by strong growth in fashion and lifestyle categories
It acquired a 96.49 percent stake in Aaidea Solutions Private Limited (Milkbasket) which is India’s first and one of the largest subscription-based daily micro-delivery services.
A 52 percent equity stake was acquired in Ritika, which owns the designer label Ritu Kumar.
The company took sole ownership of Just Dial and now holds 67 percent equity in Just Dial Limited. Reliance Brands Ltd. entered into a strategic partnership with Manish Malhotra’s brand by acquiring a 40 percent minority stake.
The company acquired the home décor business of Creative Group under the brands ‘Portico’ and ‘Stellar Home’ on a slump sale, going concern basis.
Commenting on the performance of the business, Mukesh Ambani, chairman and managing director said, “Reliance Retail continues to grow on the back of rapid expansion of both physical stores and digital offerings resulting in healthy growth in revenues and margin expansion”.
The company has a total of 13,635 physical stores operational, out of which 813 stores were opened during the quarter. The area of operation was ~ 37.3 million sq. feet as compared to 29.7 million sq. feet in the corresponding quarter of the previous year.Disclaimer: MoneyControl is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.