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Reliance Retail Q2 Result | Net Profit rises 74% to Rs 1,695 crore, revenue grows 11% to Rs 45,426 crore –

Reliance retail (Image: Shutterstock)

Reliance Retail, the retail arm of oil-to-telecom behemoth Reliance Industries, increased its revenues by 18% to Rs 45,426 crore compared to Rs 38,547 crore in the previous quarter. On a YOY basis, revenues are higher by 11% from Rs 41,100 crore.

EBITDA jumped 50% to Rs 2,913 crore from Rs 1,941 crore in the previous quarter. On a YOY basis, EBIDTA increased by 45% from Rs 2,006 crore.

The cash profit for the company came in 62.9% higher on a YOY basis at Rs 2,293 crore while the Net profit jumped 74% to Rs 1,695 crore compared to Rs 973 crore in the previous year.

Segment Performance

The retail business got a big boost with the easing of COVID related restrictions due to which the operating days available jumped from 61% last quarter to 89%. This ensured recovery in footfalls which recovered to 78% of pre-COVID levels compared to 46% last quarter.

Digital and New Commerce business segment grew 2.4 times on a YOY basis on the back of record orders across platforms especially RJio & JioMart. Strong double digit growth was witnessed in Consumer Electronics business which was aided by improved operating environment and opening of mall stores.

Digital platforms and new merchant partnerships helped the Fashion and Lifestyle business achieve higher ever quarterly revenues which more than doubled this quarter compared to last year.

Ajio was also able to ramp up its business by adding expanding its product portfolio and strong execution which helped it to double its revenues this quarter.

The Grocery business continued to post double-digit growth as the stores witnessed higher operational hours and resumption of sales in non-essential categories.

Smart stores crossed the milestone of 400 stores across the country out of which 200 stores have been launched in the last two years itself. JioMart expanded its presence to 249 cities and kirana partnership and activation scaled up to 20 times over last year.

The performance of new businesses like pharma, Zivame and Urban Ladder was very robust and they witnessed strong double digit growth this quarter.

Forging New Partnerships

The business entered into a master franchise agreement with 7-Eleven Inc., a leading convenience store player globally, and launched its first store in Mumbai with plans to scaling it across the country.

It acquired 96.49% stake in Aaidea Solutions Private Limited (Milkbasket) which is India’s first and one of the largest subscriptions based daily micro-delivery service.

52% equity stake was acquired in Ritika Pvt Ltd that owns the designer label – Ritu Kumar.

The company took sole ownership of Just Dial and now holds 67% equity in Just Dial Limited. Reliance Brands Ltd. entered into a strategic partnership with Manish Malhotra’s brand by acquiring a 40% minority stake.

The company acquired the home décor business of Creative Group under the brands ‘Portico’ and ‘Stellar Home’ on a slump sale, going concern basis.

Commenting on the performance of the business, Mr. Mukesh D Ambani, Chairman and Managing Director, said, “Reliance Retail continues to grow on the back of rapid expansion of both physical stores and digital offerings resulting in healthy growth in revenues and margin expansion”.

The company has total 13,635 physical stores operational out of which 813 stores were opened during the quarter. The area of operation was ~ 37.3 million sq. feet as compared to 29.7 million sq. feet in the corresponding quarter of the previous year.

(This is a developing story. Please check back for updates)

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