Reliance Retail on Friday reported a 69.9 per cent increase in its earnings before interest, tax, depreciation and amortisation (Ebitda) to Rs 2,049 crore for the first quarter ended June 30, led by strong sales growth.
The retail arm of Reliance Industries Ltd (RIL) had posted an Ebitda of Rs 1,206 crore in the corresponding period a year ago.
Revenue from the organised retail segment of RIL during the quarter was up 47.53 per cent to Rs 38,196 crore as against Rs 25,890 crore of the corresponding period last fiscal.
"Despite a slowdown in the FMCG and consumer sector, Reliance Retail continues to grow faster than every other player," said RIL in a statement adding "Customer centric approach, sourcing and operating cost advantage and benefit of operating leverage helped Reliance Retail deliver record Ebitda for the quarter".
During the quarter, Reliance Retail crossed the milestone of 100 million register customers and 150 million footfalls, establishing its position as the most preferred retailer in India, it added.
RIL Chairman and Managing Director Mukesh Ambani said: "We are pleased with the robust growth both in revenues and operating income for Reliance Retail. Our digital services business continues to transform the mobility market in India while scaling newer milestones."
In the April-June period, Reliance Retail added 265 new stores. It also added 23.65 per cent more in its retail space to 23 million sq ft during the period, from 18.6 million sq ft.
"Rapid store expansion particularly in tier-III and IV markets, stronger value proposition and catchment focused assortment have been key drivers for robust growth in retail business," said RIL.
As of June 30, Reliance Retail operated 10,644 stores across 6,700 plus towns and cities, with an area of 23 million sq ft.
Reliance Retail's grocery stores -- Reliance Fresh, SMART and Reliance Market -- witnessed strong growth backed by new store expansion and volume growth in existing stores.
"During the quarter, 22 Fresh/ SMART/ Market Stores were opened. Stores continued to see strong growth in customer footfalls and key metrics across all cities and town classes," it added.
While Reliance Retail opened 135 Digital and Jio Stores during the April-June period.
"Reliance Jewels expanded rapidly with opening of 9 standalone stores and 32 store-in-stores during the quarter, giving the chain a wider geographic presence," said RIL.
During the quarter, Reliance Brands, a subsidiary of the company, completed the full acquisition of British Toy retailer Hamleys and exclusive partnership with British Footwear and Handbags brand Kurt Geiger
"This acquisition will establish RBL as a major player in the global toy retail industry," it added.
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