Reliance Retail today said its net profit for the June quarter jumped by 114.2 per cent YoY to Rs 2,061 crore. The Mukesh Ambani-owned retail chain’s quarterly revenue was the best ever at Rs 58,554 crore, higher by 51.9 per cent YoY.
Retail’s operating EBITDA shot up by 180.4 per cent YoY to Rs 3,897 crore with a 350-bps improvement in the margin at 7.6 per cent compared to 4.1 per cent in the corresponding quarter of the previous year.
Retail’s operating EBITDA shot up by 180.4 per cent YoY to Rs 3,897 crore with a 350-bps improvement in the margin at 7.6 per cent compared to 4.1 per cent in the corresponding quarter of the previous year.
“This was led by higher contribution from fashion and lifestyle and consumer electronics and growing operating leverage with strong LFL growth over last year across consumption baskets,” the company said in a BSE filing.
EBITDA margin from operations also improved to 7.6 per cent in the June quarter from 4.1 per cent in Q1 of the last financial year.
“In retail business, we continue to focus on enhancing our consumer touch-points and building a stronger value proposition for our customers. Our strong supply chain infrastructure and sourcing efficiency is helping us maintain competitive pricing for daily essentials, thereby insulating consumers from inflationary pressures,” RIL CMD Mukesh Ambani said.
Reliance Retail continued to expand geographically during the quarter by opening 792 stores. It currently has 15,866 physical stores operational.
“Footfalls recorded at 175 million for the quarter were 19% above pre-Covid levels as consumers returned to stores. The increased footfalls and digital visits have translated into 220 million transactions in 1Q FY23, a growth of more than 60% over pre-Covid levels,” the company said.
The digital and new commerce business grew 2x over last year and contributed about 19% of gross revenue. “Retail segment revenues increased on account of favorable revenue mix, new store additions, normalized operations of stores and sustained growth in digital and new commerce businesses,” it said adding that daily orders on digital commerce platforms went up 64% YoY.
It was the first quarter for the company without any operating disruptions since the onset of COVID. Consumer spending got a boost as families indulged in leisure activities, socializing, festivities and shopping as COVID situation improved though sentiments remained cautious due to inflationary concerns, it said.
The registered customer base recorded a 29 per cent YoY jump and crossed the milestone of 200 million.
The consumer electronics business doubled its business over last year while fashion & lifestyle segment delivered a strong revenue growth of 3x over last year.
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