 "Q2 earnings, Q2 results")
Reliance Retail on Friday reported a 21 per cent year-on-year (Y-o-Y) rise in net profit at Rs 2,790 crore in the September quarter of 2023-24 (Q2FY24).
Its profit before interest, depreciation, and tax (Pbidt) from operations increased 30.8 per cent Y-o-Y to Rs 5,607 crore.
The country’s largest retailer’s revenue from operations increased 19.5 per cent Y-o-Y in Q2 to Rs 68,937 crore.
During the quarter, its depreciation increased on account of a higher asset base due to the addition of stores and supply chain infrastructure.
Also, it saw higher finance cost on account of increase in interest rates and borrowing for business expansion.
Its finance cost was up 50.6 per cent at Rs 631 crore.
During the quarter, Reliance Retail raised Rs 15,314 crore from KKR, the Qatar Investment Authority, and the Abu Dhabi Investment Authority.
Its gross revenue from operations for the quarter stood at Rs 77,148 crore, up 18.8 per cent, and the company attributed that to well-rounded growth in consumption baskets.
Mukesh D Ambani, chairman and managing director, Reliance Industries, said in the release: “Reliance Retail has continued to rapidly expand its offline as well as online presence, while adding to its already impressive range of products and offering. We are providing a fresh and friendly shopping experience across our seamless ecosystem. The strength and diversity of our Retail business model is consistently delivering robust performance.”
Reliance Retail continued to expand and added 471 stores in the quarter and also saw its footfall crossing 260 million across formats.
Isha M Ambani, executive director, Reliance Retail Ventures, said in the release: “I am delighted to report that we have delivered yet another quarter of stellar performance and achieved an all-time high across financial metrics. The performance is a testament to our customer-centric approach that defines Reliance Retail and we look forward to serving our customers this festive season with renewed optimism and enthusiasm.”
In the quarter, its digital commerce and new commerce businesses continued to grow and contributed 19 per cent of revenues.
It acquired Ed-a-Mamma, a kids and maternity-wear brand and majority ownership of Superdry IP for India, Sri Lanka, and Bangladesh. It also completed the transfer of assets to warehouse InvIT entity for a consideration of Rs 5,150 crore on October 25.
The company’s consumer electronics business maintained growth momentum -- 11 per cent -- over last year and on August 15 it was Digital India Sale which grew 23 per cent.
In the consumer electronics business its new commerce business expanded its merchant partner base by 44 per cent over last year.
Its fashion & lifestyle business delivered 32 per cent Y-o-Y growth. Also, its offline business showed robust growth despite the festival season falling entirely in the next quarter.
AJIO, its online platform, saw another strong quarter of growth. The catalogue expansion continued with its range expanding by 50 per cent Y-o-Y. Its luxury e-commerce platform -- Ajio Luxe --delivered strong performance with the option count going up 61 per cent Y-o-Y and a portfolio expanding to over 600 brands.
Grocery delivered record performance with 33 per cent growth Y-o-Y.
“The business is integrating Metro Cash & Carry’s operations with grocery New Commerce business to provide omni-channel experience and wider assortment to our B2B customers and merchant partners,” it said in its release.
