Reliance Retail Q4 profit rises 12.9% to Rs 2,415 cr, store count crosses 18,000

Reliance Retail Q4 profit rises 12.9% to Rs 2,415 cr, store count crosses 18,000

Reliance Retail, the country's leading retailer, on Friday reported a 12.9 per cent increase in its net profit to Rs 2,415 crore for the quarter that ended on March 31, 2023, led by a sustained growth momentum across consumption baskets, increase in footfalls and new store openings.

Besides, Reliance Retail also added 966 new stores in the March quarter, taking the total count to 18,040 and reported 41.29 per cent year-on-year in a number of footfalls at its stores to 21.9 crore.

Reliance Retail revenue for operations surged 21.09 per cent to Rs 61,559 crore in the fourth quarter of this fiscal.

The retail arm of Reliance Industries Ltd (RIL) said it posted a net profit of Rs 2,139 crore in the January-March quarter of FY22 and its revenue from operations was Rs 50,834 crore.

In the March quarter, digital commerce and new commerce businesses continued to grow and contributed 17 per cent of its revenue.

''Retail business registered excellent growth numbers backed by the expansion of physical and digital footprint and a significant increase in footfall. We continue to expand our product base across consumption baskets, ensuring our customers get world-class products at affordable prices,'' said RIL Chairman and Managing Director Mukesh D Ambani.

Its gross revenue, which includes the value of sales and services, rose 19.39 per cent to Rs 69,267 crore in the three months that ended March 31, 2023. It was Rs 58,017 crore in the year-ago period.

During the quarter, Reliance Retail's Grocery business grew 66 per cent (on YoY basis), Fashion and Lifestyle 19 per cent and Consumer Electronics (excluding devices) was up 37 per cent.

During the January-March quarter, Reliance Retail expanded its physical store network with 2,844 new store openings, taking the total number to 18,040.

Besides it also continued to bolster its infrastructure capabilities and the area operated by it increased 57.69 per cent to 65.6 million sq ft.

''The business continued to invest in strengthening its supply chain capabilities by expanding over 1.7 million sq. ft. of warehouse space,'' said an earning statement from Reliance.

While talking about the segment, Reliance Retail said its consumer electronics business grew on the back of festive events, promotions and new launches.

Its owned/licensed brands business in Consumer Electronics doubled their of revenues, while sale from new commerce continued its growth momentum and expanded its merchant partner base by three fold Y-o-Y.

Similarly, its fashion & lifestyle delivered 19 per cent revenue growth led by wedding season & festivals resulting in higher bill values and improved conversion.

Its online fashion channel AJIO also reported another strong quarter with improvement across operational metrics. Its jewellery business also had 28 per cent revenue growth in Q4/FY23, on the back of wedding season and regional festivities.

Its lingerie business, where it owns brands as - Clovia, Amante, and Zivame - saw a strong revenue growth of 88 per cent across the brand portfolio. While its wooden furniture brand Urban Ladder continued its store expansion to bolster omnichannel experience and doubled its catalogue.

In the grocery business, Reliance Retail’s stores led by Smart and Smart Bazaar formats witnessed strong growth arising from store expansion and volume growth in existing stores.

''The business delivered robust revenue growth led by growth across categories. The non-food contribution continues to expand and is further completing the daily and monthly shopping needs of the customers,'' it said.

Its Grocery Digital Commerce business saw a steady revenue growth driven by festive demand and expansion of Milkbasket in new markets during the quarter.

Reliance's online platform JioMart also delivered ''its best quarter'' with a robust growth across categories.

While its pharma business Netmeds continues to show steady growth across channels and geographies, the earning statement said.

For the financial year ending March 31, 2023, Reliance Retail's revenue from operation was up 32 per cent to Rs 230,931 crore compared to Rs 174,980 crore a year ago.

Its net profit for FY23 was Rs 9,181 crore, up 30.13 per cent from Rs 7,055 crore in the previous year.

Similarly, its gross revenue in the year was up 30.37 per cent to Rs 260,364 crore.

Commenting on the results, Isha M Ambani, Executive Director, Reliance Retail Ventures Ltd, said:'' Reliance Retail continues on the path of registering industry leading growth year after year at a scale unmatched in India. Our focus on customer-centricity backed by investments in technology, innovation and new business segments have helped us create operational excellence and steer the transformation of India’s retail sector.'' Reliance Retail Ventures Lt is the holding company of Reliance Retail.

Reliance Retail Q4 profit rises 12.9% to Rs 2,415 cr, store count crosses 18,000
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