Reliance Retail Q1 Net Profit Surges 19% To Rs 2,448 Cr

Reliance Retail (RRL), the largest retail chain company in India, reported impressive gains during the April-June quarter, despite a slowdown in the consumer economy. The company, owned by multibillionaire Mukesh Ambani's group, announced a 19 per cent increase in its net profit for the quarter, reaching Rs 2,448 crore compared to Rs 2,061 crore in the same quarter last year.

The company's revenue from operations also showed a substantial growth of 20.5 per cent year-on-year (YoY), reaching Rs 62,159 crore. Additionally, the earnings before interest, tax, depreciation, and amortisation (EBITDA) from operations rose by 25.6 per cent to Rs 4,896 crore, leading to an improved EBITDA margin of 7.9 per cent, a YoY increase of 30 basis points.

Mukesh Ambani, the Chairman and Managing Director of Reliance Industries (RIL), expressed satisfaction with the robust growth in the retail business. He attributed the success to the addition of new stores and a steady increase in footfalls. Ambani also mentioned the positive impact of the company's Digital and New Commerce initiatives, which have provided value to consumers and benefits to merchant partners.

During the quarter, Reliance Retail continued its aggressive expansion efforts, witnessing a 55.2 per cent YoY surge in the area under operation, amounting to 70 million square-feet. The company added 406 stores compared to the previous quarter, bringing the total store count to 18,446.

Isha Ambani, the Executive Director of Reliance Retail Ventures (RRVL), expressed satisfaction with the company's resilient performance, aligning with their business goals. She emphasised that the sustained growth across various consumption categories solidified Reliance Retail's position as a market leader. Isha Ambani highlighted the company's commitment to innovation and investments in both physical stores and digital platforms to enhance the shopping experience for customers.

Reliance Retail attributed its topline growth to various divisions, including grocery, consumer electronics (excluding Devices), and fashion and lifestyle. The company achieved the highest-ever footfall of 249 million across its formats during the quarter. The consumer electronics business experienced 14 per cent YoY growth, driven by engaging promotions and regional festivities. Similarly, the fashion and lifestyle business achieved a 15 per cent YoY revenue growth, primarily due to increased store traffic and average bill value.

The grocery business played a pivotal role in the company's top-line growth, witnessing a remarkable 59 per cent YoY increase, mainly driven by Smart and Smart Bazaar formats. Non-food categories also exhibited rapid growth and an increasing share in the overall business. Reliance Retail capitalised on the summer season, leveraging categories like ice-creams, cold drinks, and seasonal fruits like mangoes. The company's grocery new commerce initiatives evolved, integrating with the Metro Cash and Carry India business to strengthen its value proposition. Initiatives are currently underway to further integrate the Metro business with Reliance Retail.