Reliance Retail, the retail arm of Reliance Industries Ltd (RIL), on April 30 reported a 45 percent year-on-year (YoY) jump in its net profit at Rs 2,247 crore for the quarter ended March 31 (Q4FY21). The company’s revenue for the period stood at Rs 47,064 crore (up 23.2 percent) against Rs 38,211 crore logged in the previous year. The company’s full year profit grew 0.6 percent YoY to Rs 5,481 crore.
On a quarter-on-quarter (QoQ) basis, the company’s revenue gained 24.4 percent to Rs 47,064 crore.
“Reliance Retail delivers a resilient performance against the backdrop of an unprecedented and challenging operating environment, arising from the COVID pandemic situation that emerged at the start of the year,” the company said in a press release.
Despite a challenging year, due to the government-enforced restrictions in the wake of the COVID-19 pandemic, the company added 1456 new stores and generated over 65,000 jobs for the year. Of this most stores, 826, were introduced in the fourth quarter. Its total store count now stands at 12,711 stores, covering 33.8 million sq ft. at the end of the year.
Due to the restrictions, the company witnessed 65 percent footfalls as compared to the last year, while only 80 percent of its stores were operational.
The company also said its thrust on expansion and transformation continued for the year, with a focus on strengthening omnichannel and digital platform capabilities and scaling up new commerce. Reliance Retail had launched its hyperlocal grocery platform JioMart last year.
As per the company, JioMart Kirana partnerships in the January-March period grew by three times over last quarter, while its reach was extended to ten new cities taking the total presence to 33 cities.
Among its other brands, Reliance Trends revenue from the small towns grew by two times during the year, which now contribute about 50 percent of the brand’s sales. The company informed that it has also integrated about 400 Reliance Trends Stores with JioMart.
Consumer sentiment nosedives
However, the company also cautioned that the second wave of the pandemic since late-March has been adversely impacting the business due to the lockdowns and other operational challenges.
The company reported its footfalls had already dropped to 35-40 percent of the pre-Covid levels in April, while the consumer sentiment took a hit as they started cutting down on non-essential purchases.
Currently, it said, 80-90 percent of its grocery stores are operational, which are operating at 50 percent efficiency, while only 40-50 percent of fashion, lifestyle and electronics stores are operational. Disclaimer: MoneyControl is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.