Reliance Retail Q1: Net profit up 18.8% at Rs 2,448 crore, revenue up 19%

Reliance Retail Q1FY24 earnings

Reliance Retail, the retail arm of diversified conglomerate Reliance Industries, on July 21 reported an 18.8 percent year-on-year (YoY) increase in net profit to Rs 2,448 crore in the quarter ended June.

Gross revenue stood at Rs 69,948 crore, rising 19 percent YoY from Rs 58,554 crore in the corresponding quarter last year, the company said. The growth was led by growth in Grocery, Consumer Electronics (excluding Devices) and Fashion & Lifestyle.

On the operating front, EBITDA (earnings before interest, taxes, depreciation and amortization) grew 33.9 percent YoY to Rs 5,139 crore. EBITDA margin from operations on net sales was at 7.9%, up 30 bps Y-o-Y driven by sourcing benefits and operating efficiencies.

Reliance Retail received a record 249 million footfalls across formats and geographies in the quarter, a growth of 42 percent YoY. Reliance Retail expanded its physical store network with 555 new store openings, taking the total store count at the end of the quarter to 18,446 and operating area to 70.6 m sft. The registered customer base grew 28 percent YoY to reach 267 million.

Grocery business delivered another quarter of record performance, up 59 percent Y-o-Y, led by Smart and Smart Bazaar formats. Non-food continues to grow rapidly with improving share in overall business. The business capitalized on the summer season with an uptick in several related categories such as ice-creams, cold drinks, and seasonal fruits like mangoes.

The fashion and lifestyle business delivered a revenue growth of 15 percent Y-o-Y driven by pick up in store traffic and average bill value as Consumer preferences continue to evolve particularly after social life and travel has resumed in a post COVID era.  AJIO reported another strong quarter with sustained improvement across operational metrics. The business added 2 million new customers during the period along with several new brand launches across categories.

Jewlery business saw robust revenue growth on the back of growth across all town classes led by wedding season and regional festivals.

Consumer Electronics business, excluding devices, delivered 14 percent growth Y-o-Y by driving consumer engagement through category-led promotions and regional festivities leading to broad based growth across
categories.

"The sustained growth across consumption baskets has further consolidated our position as a market leader. We continue to innovate and invest in our stores and digital platforms to make shopping more engaging for our customers." said Isha M Ambani, Executive Director, Reliance Retail Ventures Limited.

Consumer brands business is focusing on expanding distribution reach and engagement in General Trade channel, delivering 8x Y-o-Y revenue growth. There was a sharp uptick in performance of the beverages category with sales growing 11x Y-o-Y led by Campa Cola gaining traction across the country.

Jio Mart continues to focus on strengthening its catalogue with option count growing around 6x Y-o-Y and expanding its seller base which is up around 4x Y-o-Y.

JioMart has built a new marketing property, ‘Grand Shopping Carnival’ which has been well received by customers. The event drove a large base of incremental customers and witnessed doubling of electronics category share.

The business completed acquisition of Metro Cash and Carry India towards the end of the quarter.

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