Reliance Retail, the retail arm of diversified conglomerate Reliance Industries, clocked 17 percent year-on-year (YoY) jump in revenue from operations at Rs 67,634 crore in the quarter ended December 2022.
Consolidated revenue for Reliance Retail stood at Rs 57,717 crore in the same period last year.
Net profit for the quarter rose 6.2 percent YoY to Rs 2,400 crore, from Rs 2,259 crore in Q3 FY22. The company said it recorded its highest ever footfalls at 201 million across formats and geographies, registering a growth of 25 percent YoY.
This was in-line with analyst expectations. The Street had forecast Reliance Retail to continue its strong growth show with an improvement in footfalls during the festive season and the benefits of operating leverage.
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Reliance Retail also recorded its highest ever quarterly EBITDA (earnings before interest, taxes, depreciation and amortization) at Rs 4,773 crore, up 24.9 percent YoY. EBITDA margin on net sales was at 7.9 percent, up 40 basis YoY.
One basis point is one-hundredth of a percentage point.
Meanwhile, finance costs increased 255 percent YoY to Rs 568 crore, on account of higher loan balances and increase in interest rates.
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“Our performance during the quarter demonstrates the underlying strengths and efficiencies of our business model that enable us to serve our customers with excellence at all times. We remain steadfast in offering the best shopping experience across all our stores and digital platforms to deepen our bond with our customers and vendor partners," said Isha M Ambani, Executive Director, Reliance Retail Ventures.
The physical store network expanded with 789 new openings, taking the total store count at the end of the quarter to 17,225 stores with an area of 60.2 million square feet, the company said in its press release.
Coming to each consumption basket, grocery business grew 65 percent YoY, fashion and lifestyle grew 13 percent YoY and consumer electronics (excluding devices) grew 45 percent.
Jiomart strengthened its catalogue by 71 percent sequentially and expanded seller base by 83 percent QoQ. AJIO also expanded its customer base by 33 percent and catalogue size by 62 percent YoY.
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"Festive offers during Diwali, Prathmasthami and Christmas gained traction with customers resulting in higher conversions and bill values. Acquisition of Sosyo, Lotus Chocolate and launch of Independence brand will further strengthen the portfolio," said Isha Ambani.
(Disclosure: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary)
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