Reliance Retail Q3: Net profit up 32% at Rs 3,165 crore, revenue at record high

Reliance Retail announces its Q3FY24 results.

Reliance Retail Ventures Ltd, the retail arm of Reliance Industries Ltd, said quarterly profit rose 32 percent from a year earlier to Rs 3,165 crore on record sales.

Gross revenue rose 23 percent to Rs 83,063 crore from a year earlier, driven by grocery, fashion and lifestyle and consumer electronics businesses.

“The retail segment has also delivered an impressive financial performance with its rapidly expanding physical as well as digital footprint. Reliance Retail remains focused on enriching customer shopping experience by adding new brands and offerings to its portfolio,” Chairman Mukesh Ambani said in a statement on January 19.

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose 31.1 percent to Rs 6,258 crore. EBITDA before investment income amounted to Rs 6,061 crore, marking a 30.1 percent growth from a year earlier.

“Our business success is intricately woven into the larger fabric of India’s economic growth, and together, we are shaping a compelling story of innovation and world-class possibilities for the future. We remain resolute in our commitment to bring high-quality products at great value to our customers with an engaging shopping experience,” said Isha M. Ambani, Executive Director.

In the latest quarter, the company expanded its footprint by opening 252 new stores for a total of 18,774 stores covering 72.9 million sq ft. Footfalls surged to over 282 million across formats, reflecting a 40.3 percent growth.

The Digital Commerce and New Commerce business maintained strong growth, contributing a significant 19 percent share of total revenue. Boosting its market presence, the business acquired Sephora India’s franchise business and secured an exclusive distribution arrangement with SMCP to introduce Sandro and Maje brands in India. Additionally, a co-branded credit card in collaboration with SBI Card was rolled out, offering diverse benefits across spending categories.

The grocery segment experienced a remarkable 41 percent growth from a year earlier, primarily driven by increased demand during the festive season. The ‘Bestival Sale’ during this period showed robust demand in categories such as confectionery, snacks, and dry fruits.

The company observed strong growth in non-food categories, particularly in General Merchandise & Home and Personal Care, within its stores. The integration of Metro India’s operations has further enhanced the business’s collaboration with merchant partners, leading to Metro achieving its highest-ever quarterly sales during this period.

JioMart experienced steady growth driven by increased traffic and higher average order values across various categories, with Food & Lifestyle and Consumer Durables and IT outperforming.

Additionally, the platform expanded its catalogue options by 84 percent from a year earlier, and the seller base has more than tripled from the previous year.

Consumer brands achieved substantial year-over-year growth, nearly tripling in both revenues and distribution reach. The growth was driven by categories such as beverages, general merchandise, and staples. New product launches have been particularly successful, with Campa and Independence garnering positive feedback from trade channels and consumers.

The Fashion and Lifestyle business achieved a remarkable 28 percent year-over-year growth, driven by increased footfalls and conversions during the festive season. Successful execution of multiple campaigns, including those for festive and wedding seasons, regional events, and winter, contributed to enhanced customer engagement. New format expansions, such as Azorte and Yousta, were scaled up.

AJIO continued to strengthen its catalogue and improve its value proposition, introducing new brands and app features for an enhanced customer experience. Urban Ladder focused on expanding its store network, and Tira received strong customer traction, demonstrating robust performance in sales productivity, average bill value, and repeat business across various metrics.

The consumer electronics business reported a 19 percent growth from a year earlier, driven by increased basket values and improved conversions. The JioMart Digital business continued to grow, expanding its merchant partner base by 34 percent.