 "Reliance Retail")
Reliance Retail on Friday reported a 31.9 per cent year-on-year (Y-o-Y) rise in net profit at Rs 3,165 crore in the December quarter of financial year 2023-24 (Q3FY24).
Its profit before interest, depreciation and tax (PBIDT) from operations rose 30.1 per cent to Rs 6,061 crore. The country’s largest retailer’s revenue from operations increased 23.8 per cent in Q3 to Rs 74,373 crore.
Depreciation increased on account of higher asset base due to addition of new stores and supply chain infrastructure.
Also, it saw higher finance costs on account of increase in interest rate and borrowings for business expansion.
Gross revenue from operations for the quarter stood at Rs 83,063 crore, up 22.8 per cent. The company attributed this growth to grocery, fashion & lifestyle and consumer electronics businesses.
Mukesh Ambani, chairman and managing director, Reliance Industries, was quoted as saying in the release of its retail business, “The retail segment has also delivered an impressive financial performance with its rapidly expanding physical as well as digital footprint. Reliance Retail remains focused on enriching customer shopping experience by adding new brands and offerings to its portfolio. Its new commerce initiatives continue to support the growth journey of millions of small merchants through technology, generating immense societal value.”
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Reliance Retail continued to expand and added 252 new stores in the quarter and also saw its footfalls cross 282 million across formats.
“Reliance Retail has delivered strong performance during the festive quarter. Our business success is intricately woven into the larger fabric of India's economic growth. Together, we are shaping a compelling story of innovation and world class possibilities for the future. We remain resolute in our commitment to bring high quality products at great value to our customers with an engaging shopping experience,” Isha M Ambani, executive director, Reliance Retail Ventures, said in the release.
During the quarter, its digital commerce and new commerce businesses continued to grow and contributed 19 per cent of revenue.
Reliance Retail launched Swadesh, focusing on India’s tradition and art forms, and AjioGram, a D2C-focused content driven platform.
It also acquired Sephora India’s franchise business and entered into an exclusive distribution arrangement with SMCP to launch Sandro and Maje brands in India.
Grocery delivered 41 per cent Y-o-Y growth with uptick led by festive demand.
“Robust demand in festive categories, confectionery, snacks and dry fruits was witnessed during the period,” it said in its results release.
It also added that with integration of Metro India’s operations, the business is further gaining traction with merchant partners. Metro recorded its highest ever quarterly sales during the period.
JioMart delivered steady growth, led by increase in traffic and average order value as customers continue to shop across categories on its platform.
It also strengthened its catalogue with option count scaling up 84 per cent Y-o-Y and seller base expanding by more than three times over last year.
Consumer brands delivered approximately three times Y-o-Y growth in revenues and distribution reach, with categories like beverages, general merchandise and staples driving the growth momentum.
It launched namkeens and sweets in Masti Oye! Brand and “Deluxe” assorted toffees across multiple pack sizes under Toffeeman during the quarter.
Its fashion & lifestyle business delivered 28 per cent growth led by higher footfalls and conversions, as customers shopped for the festive season.
It also continued to scale up new formats, including Azorte and Yousta, and its partner brands continued to lead the premium and luxury segments with the widest portfolio of brands.
Its consumer electronics business saw 19 per cent growth over last year. This is on the back of higher basket value and improved conversions.
