Reliance Retail Ventures Ltd (RRVL), the retail arm of India’s largest conglomerate, said net profit rose 11.7 percent from a year earlier, driven by growth in consumer electronics and fashion & lifestyle segments.
Net profit rose to Rs 2,698 crore in the quarter ended March 31 from Rs 2,415 crore a year ago, RIL said in a stock exchange filing on April 22.
Gross revenue rose 10.6 percent to Rs 76,627 crore from Rs 69,267 crore.
“We continue to invest and innovate across formats and products to improve our customer value proposition and serve evolving consumer needs. Robust expansion and growth of our retail business signify our commitment to customer centricity and confidence in India’s consumption story,” said Isha M. Ambani, Executive Director, Reliance Retail Ventures Ltd.
The retail business maintained robust profit growth, with a 28.5 percent increase in earnings before interest, taxes, depreciation, and amortization (EBITDA) to Rs 23,040 crore for the fiscal year ended March 31, the company said.
EBITDA margin on net sales improved to 8.4 percent, up 60 basis points from a year earlier.
During the fourth quarter, the company opened 562 new stores, adding 7.8 million sq. ft. in gross area. Footfall traffic surged 24.2 percent from a year earlier to over 272 million visitors, bolstering the company’s position as the top retailer in India, the company said.
Continuing growth
The company is broadening its grocery segment offerings with premium products such as international foods and beauty products. Reliance Retail is also focussing on regional markets, where pre-Holi sales have surpassed those of Diwali in some areas.
JioMart also saw a significant increase in sellers and available products. The company saw a rise in the number of users and the total value of goods sold, especially during special sales events like ‘Holi Ready’ and ‘Republic Day’. The company also introduced new features to make shopping easier, such as a ‘Buy Again’ option and customer ratings for products.
Reliance Retail’s consumer brand division also reported rapid expansion, with growth in general trade tripling from a year earlier.
“The consumer brand business is seeing strong demand for Campa and Independence brands, particularly in beverages and staple foods. New product launches include Campa Runner Energy Lemon drink, Necto aerated beverage, and Brew House brewed tea”, it said.
The company expanded its fashion & lifestyle offerings with new formats such as Azorte, Yousta, and GAP, while its in-house brands achieved over Rs 2,000 crore in annual sales.
“By focusing on a fast fashion supply chain, the fashion and lifestyle vertical consistently offers new stylish options. AJIO platform improved its offerings and customer experience, with events like ‘All-Star Sales’ attracting significant traffic and new customers. Premium brands saw a 20 percent year-on-year growth, while Ajio Luxe showed steady performance with a 44 percent increase in options. Despite rising gold prices, the Jewels business maintained steady performance, emphasizing product launches on key occasions,” the company said.
The consumer electronics business maintained growth, led by higher average bill value and better conversion rates. Key sales events like “Digital India Sales” saw a 15 percent year-on-year increase. Specific campaigns such as ‘Digital Chill Fest’ and ‘Big Screen Fest’ were successful in engaging customers. The company’s resQ service centers expanded with 24 new locations. The vertical’s in-house brands introduced a new brand called WYZR and expanded into coolers, with plans for further expansion. JioMart Digital saw a 20 percent year-on-year increase in merchant partners.
Disclosure: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
