Finance

Reliance Retail net revenues jump 19%

The total store count of the company stands at 12,803 stores spread across 34.5 million sq.ft of retail space.

Reliance Retail on Friday reported net revenues of Rs 33,566 crore on a consolidated basis in the three months ended June, an increase of about 19% compared to the year-ago period. Net revenues stood at Rs 28,197 crore in Q1FY21. “The focus on scaling up digital commerce and merchant partnerships helped partially alleviate the loss of business due to store closures. These streams contributed a sizable 20% of retail sales in the quarter,” the company said.

In Q1FY22, the company’s Ebitda increased to Rs 1,941 crore from Rs 1,079 crore in the year-ago period, registering a significant growth of 79.9%, driven by stepped up revenues in fashion & lifestyle, consumer electronics segments, judicious cost management and investment income of Rs 551 crore, the company said.

Ebitda margin rose to 5.8% during the quarter from 3.8% in Q1FY21. Reliance Retail posted a 123.2% year-on-year rise in net profits at Rs 962 crore in Q1FY22.

The consumer electronics segment recorded strong growth over last year helped by a better operating environment and higher sales of devices.

Although sequential momentum was impacted by the second Covid wave, lower footfalls in the quarter was partially offset by higher conversions and larger bill values, the firm said adding that “the emphasis on digital commerce enabled Reliance Digital clock its best-ever quarter with record sales and uptick across consumer metrics.”

Grocery orders on JioMart were up by 25% over the last quarter with high repeat rates while coverage was extended to 218 cities, the firm claimed. “Kirana relationships were up by a third over last quarter with a significant step up in business,” the company added.

Smaller towns led the Fashion and Lifestyle business during the quarter. Digital platform Ajio claimed to have seen as much as four times increase in order over the previous year. The retailer said that consumer traffic and monthly active users for Ajio got a boost. New businesses Netmeds, Zivame and Urban Ladder saw a considerable jump in orders.

Reliance Retail that operates multi-format stores ranging from neighbourhood to supermarket and manages a clutch of brands opened 123 new stores during the quarter. The total store count of the company stands at 12,803 stores spread across 34.5 million sq.ft of retail space.

“The business remains strongly focused in augmenting its capabilities across channels, building its compelling proposition for customers and merchant partners and developing its product portfolio to stay on trend with emerging preferences. Whilst the current operating environment is uncertain, we remain cautiously optimistic and committed to restoring the strong growth momentum that was seen pre-pandemic, as operating curbs are lifted,” the company said.

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