 "Reliance Retail profit flat in Q1, Ebitda grows on store expansion")
Reliance Retail on Friday reported an almost flat net profit at Rs 2,453 crore in the June quarter of 2024-25 (Q1FY25).
Its Ebitda (earnings before interest, tax, depreciation, and amortisation) from operations increased 11.5 per cent year-on-year (Y-o-Y) to Rs 5,448 crore.
The company attributed the rise in Ebitda to an increase in footfall and expansion of the store footprint.
Its Ebitda stood at Rs 5,664 crore, up 10.5 per cent. The country’s largest retailer’s revenue from operations increased 6.6 per cent Y-o-Y in Q1 to Rs 66,260 crore.
Depreciation increased on account of a higher asset base due to the addition of stores and its finance cost declined on account of debt repayment.
Its gross revenue from operations for the quarter stood at Rs 75,615 crore, up 8.1 per cent.
More From This Section
Mukesh Ambani, chairman and managing director, Reliance Industries, was quoted as saying in the release on its retail business: “Retail business delivered robust financial results, as compared to last year, well supported by all consumption baskets. With fast-paced expansion of its retail footprint, Reliance Retail continues to cement its position as the preferred retailer for millions of Indians. The digital and new commerce segments are also scaling up rapidly.”
Reliance Retail added 331 stores in the quarter and its footfall was at 296 million across formats, registering a growth rate of 18.9 per cent compared to last year.
The company said its focus on scaling up digital commerce and new commerce continued with these channels, contributing to 18 per cent of total revenue.
Reliance Retail said in its earnings release the business continued to invest in stores, platform enhancements, product design and sourcing capabilities. These initiatives will help the company sustain growth momentum in the near and medium terms.
“We continue to make strides in delivering better retail experiences for our customers as we embrace innovation to improve products, processes, and platforms along with integrating advanced technologies,” Isha M Ambani, executive director, Reliance Retail Ventures, said in the release.
During the quarter, the retail arm of Reliance Industries entered into a long-term licensing arrangement with ASOS, the UK’s leading online fashion retailer, to exclusively retail the brand’s portfolio of fashion-led own brand labels across all online and offline channels in India.
Growth in its consumer electronics business was led by customer walk-ins and increasing average bill value while its digital stores delivered steady growth, led by summer season for air conditioners, refrigerators, and TVs, because of events like the T20 World Cup and Indian Premier League. Its own brand/product business group introduced products across categories even as it continued to grow its merchant base, which was up over 100 per cent Y-o-Y.
The JioMart digital business growth was driven across categories and it expanded its merchant base by 14 per cent Y-o-Y.
The fashion & lifestyle business focused on emerging trends and an expansion of the store footprint, the company said. AJIO delivered steady performance as it expanded its products by more than 20 per cent over last year and added over 1.9 million customers. It executed its flagship marketing property ‘Big Bold Sale’ with 21 per cent higher traffic and 50 per cent higher conversions against business as usual.
Also, its AJIO Luxe delivered growth with options count increasing by 39 per cent Y-o-Y and brand portfolio crossing 700 brands.
In grocery, Reliance Retail witnessed another quarter of steady growth, led by big box formats and expansion in Tier-II and beyond. The business executed its ‘Summer Ready Sale’ (up 30 per cent Y-o-Y) and ‘Full Paisa Vasool Sale’ (up 32 per cent Y-o-Y) events during the period.