Home Big Grid Reliance Retail Q2 pre-tax profit up 51.2 pc at Rs 4,404 cr;...

Reliance Retail Q2 pre-tax profit up 51.2 pc at Rs 4,404 cr; revenue rises 44.5 pc to Rs 57,694 cr

By  
SHARE

New Delhi :Reliance Retail on Friday reported a 51.18 per cent jump in pre-tax profit at Rs 4,404 crore for the September 2022 quarter, led by store additions and a strong revival in footfalls.

The retail business delivered “all-time high revenue” and profits, and Reliance Retail has become India’s leading retail firm with more than 50 million square feet of retail space under operation.

The retail arm of Reliance Industries Ltd (RIL) said it had posted a pre-tax profit or EBITDA (earnings before interest, tax, depreciation and amortisation) of Rs 2,913 crore in the July-September quarter of FY21.

Its revenue from operations of the organised retail segment surged 44.50 per cent to Rs 57,694 crore in the latest September quarter from Rs 39,926 crore in the year-ago period.

“The business delivered record revenue and profits during the quarter led by broad-based growth across all consumer baskets,” said an earning statement from Reliance Industries Ltd.

Reliance Retail’s net profit for the quarter was Rs 2,305 crore, up 36 per cent year-on-year and its cash profit for the quarter was Rs 3,324 crore, up 45 per cent.

Commenting on the results, its Chairman and Managing Director Mukesh D Ambani said: “Our Retail business delivered record performance with a strong revival in footfalls, store additions and digital integration. Reliance Retail continues to provide a compelling proposition of great shopping experience and superior value across consumption baskets and price points”.

Reliance Retail’s businesses such as grocery and pharma doubled their business, while consumer electronics and fashion lifestyle grew over 40 per cent in the latest September quarter.

Its digital and new commerce business grew over 60 per cent and contributed 18 per cent of the revenue of Reliance Retail.

Reliance Retail’s gross revenue, which includes the value of sales and services, rose 42.91 per cent to Rs 64,920 crore in the three months ended September 30, 2022. It was Rs 45,426 crore in the year-ago period.

“The business expanded its physical store network with 795 new store openings with an area of 9.2 million sq ft, up 20 per cent Q-o-Q, taking the total store count at the end of the quarter to 16,617 stores with an area of 54.5 million sq ft,” said RIL.

Reliance Retail is now the only Indian retailer with more than 50 million square feet of retail space under operation. Its total employee base now stands at a record over four lakh, making Reliance Retail one of the largest employers in the country.

“As consumers returned to stores, Reliance Retail received over 180 million footfalls across formats and geographies in the quarter, a growth of 23 per cent over the pre-COVID period,” it said.

It had 37.3 million sq ft under operation in the corresponding July-September quarter of FY22.

“Reliance Retail received over 180 million footfalls across formats and geographies in the quarter, a growth of 23 per cent over the pre-COVID period,” the company said.

Reliance Retail, which created WhatsApp AI chatbot for its e-commerce platform on JioMart has received 37 per cent of its orders from new customers who had not shopped on JioMart before.

Over the outlook, Reliance Retail said it will continue its growth momentum with store expansion and digital commerce.

It will continue “expanding new commerce business by accelerating merchant onboarding & increasing share of wallet” and “enhance supply chain infrastructure and drive efficiencies”.