Reliance Retail on Friday reported a 45% y-o-y rise in net profits at Rs 2,247 crore in Q4FY21. Net profits for the year stood at Rs 5,481 crore, higher by a marginal 0.6%, the company said in a statement . The company reported revenues of Rs 41,296 crore on a consolidated basis in the three months ended March, an increase of nearly 20% compared to the year-ago period.
For the full financial year, the company recorded net revenues of Rs 1.39 lakh crore, marginally lower than revenues of Rs 1.46 lakh crore posted in FY20.
The company’s EBITDA increased to Rs 3,617 crore from Rs 2,557 crore in the year-ago period, registering a significant growth of 41.45%, helped by doubling of consumer electronics profits. “4QFY21 was a landmark quarter for the business with quarterly revenue and EBITDA at an all- time high despite lesser than normative operating conditions,” the company said. For FY21, EBITDA stood at Rs 9,789 crore compared to an EBITDA of Rs 9,683 crore in the previous financial year. The firm said that the growth was “driven by the gradual rebound of revenue streams, judicious cost management initiatives and boosted by higher investment income.” EBITDA margin rose to 8.8% during the quarter from 7.4% in Q4FY20.
While higher sales of Jio devices boosted growth of the electronics consumer segment, the grocery segment “hit its all time high revenues” during the quarter, the firm claimed. The company said that JioMart kirana partnerships saw a three times growth over the last quarter “with reach extended to 10 new cities and taking the count to 33 cities.”
The Fashion and Lifestyle business saw good traction in smaller cities—for instance, over 55% of Reliance Trends’ revenues came from smaller towns.
Reliance Retail that operates multi-format stores ranging from neighbourhood to supermarket and manages a clutch of brands opened 826 new stores during the quarter. The total store count of the company stands at 12,711 stores spread across 33.8 million sqft of retail space.
“Overall, given the operating environment in the quarter, which by and large remained at par with the previous quarter (94% of stores operational, footfalls at 88% of pre-Covid levels), the business has delivered a strong performance that reflects a recovery since the pandemic set in,” the company said.