 "Reliance Retail Q4 net profit up 13% to Rs 2,415 crore; finance cost jumps")
Reliance Retail on Friday reported a 12.9 per cent year-on-year (YoY) rise in net profit at Rs 2,415 crore in the March quarter of FY23.
Its Ebitda (earnings before interest, taxes, depreciation, and amortisation) from operations increased 33.1 per cent YoY to Rs 4,769 crore.
The country’s largest retailer’s revenue increased 21.1 per cent YoY in Q4 to Rs 61,559 crore.
During the quarter, its depreciation increased due to higher asset base due to addition of new stores and supply chain infrastructure and its finance cost was higher on account of an increase in borrowings for business expansion. Finance cost in the quarter stood at Rs 573 crore compared to Rs 231 crore in the year ago quarter.
Its gross revenue from operations stood at Rs 69,267 crore, up 19 per cent due to growth in groceries, consumer electronics, and fashion & lifestyle.
The business recorded gross revenue of more than Rs 2.60 trillion in FY23, an increase of 30 per cent over last year, driven by broad-based growth across consumption baskets, the company said in its release.
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Mukesh Ambani, chairman and managing director, Reliance Industries, was quoted as saying in the release: “Retail business registered excellent growth numbers backed by expansion of physical and digital footprint and a significant increase in footfall. We continue to expand our product base across consumption baskets, ensuring our customers get world-class products at affordable prices. Our retail team has an unwavering focus on enhancing consumer experience and ease of shopping.”
The company said in the release: “Reliance Retail delivered robust performance with another year of strong revenue growth and profit performance.”
The conglomerate’s retail business continued its store expansion through the quarter and opened 966 of them, totalling 6 million square feet.
In Q4, it witnessed the highest ever footfall at 219 million across formats and geographies. Reliance Retail continued to invest in its supply chain and expanded its warehouse space by adding more than 1.7 million square feet during the quarter.
Reliance Retail’s digital commerce and new commerce businesses continued to grow and its contribution to revenue stood at 17 per cent.
During the year, Reliance Retail entered the FMCG and beauty business.
“The FMCG business launched several products during the year including ‘Independence’ brand and the iconic beverage brand, ‘Campa’. The beauty business launched digital commerce platform ‘Tira’ and opened its flagship store in Mumbai. These businesses would be ramped up progressively in the coming period,” it said in its release.
Isha M Ambani, executive director, Reliance Retail Ventures, said in the release: “Reliance Retail continues on the path of registering industry leading growth year after year at a scale unmatched in India. At Reliance Retail we remain committed to delivering exceptional value to our customers while driving sustainable growth for our business and various stakeholders in the ecosystem. Our focus on customer-centricity backed by investments in technology, innovation and new business segments have helped us create operational excellence and steer the transformation of India’s retail sector.”
The consumer electronics business’s revenue was up 35 per cent during the quarter on the back of festivals, promotions, and launches. The business delivered its best ever Republic Day period sales, the company said.
In the consumer electronics business, new commerce continued its growth momentum and expanded its merchant partner base by three times year-on-year.
The fashion and lifestyle business saw revenues grow by 19 per cent year-on-year on the back of the wedding season and festivals resulting in higher bill values and improved conversions.
Trends and Trends extension formats consolidated their position as India’s largest fashion destination, the company said, adding that AJIO reported another strong quarter with improvement across operational metrics.
The premium brands business saw a 35 per cent growth rate year-on-year, driven by its wide products and brand offers.
“The business strengthened food and beverages portfolio by entering into exclusive partnerships with EL&N cafe. The business also entered into a JV with Circle E Retail to vertically integrate its toy business,” it said.
Its jewellery business saw revenue growth of 28 per cent year-on-year, on the back of the wedding season and regional festivities.
In grocery, Reliance Retail’s stores, led by Smart and Smart Bazaar formats, witnessed strong growth due to store expansion and volume growth in existing stores.
“The business delivered robust revenue growth led by growth across categories. The non-food contribution continues to expand and is further completing the daily and monthly shopping needs of the customers,” it said.
On its consumer brands business, the company said it was on a strong growth path with all categories performing well. During the quarter, the business grew its product range with the addition of Maliban (biscuits), Raskik (beverages), and Toffeeman (candy) to its portfolio.
JioMart delivered its best quarter with robust growth across categories and its pharmaceutical business continues to show steady growth across channels and geographies.