The second-quarter profit of Reliance Retail Ventures Ltd. increased as a result of robust demand and higher prices.
footfalls Around the beginning of the holiday season According to its parent firm Reliance Industries Ltd.’s exchange statement, the net profit of India’s largest retailer, controlled by billionaire Mukesh Ambani, increased 11.8% over the previous quarter to Rs 2,305 crore in the three months ended September.
Its net profit increased 36% year on year on a low foundation due to Covid-19-related difficulties.
Highlights from Reliance Retail’s Q2 FY23 (QoQ)
- The gross income increased by 10.87% to Rs 64,920 crore.
- Net revenue from operations increased 11.84% to Rs 57,694 crore.
- Ebitda increased by 9.9% to Rs 4,286 crore, an all-time high.
On higher-priced inventory, margin decreased to 7.4% from 7.6%.
“Our retail business delivered record performance with strong revival in footfalls, store additions and digital integration, Reliance Industries Chairman and Managing Director Mukesh Ambani said in a statement.
As customers returned to stores, the company experienced a record 180 million footfalls across formats in Q2, up 23% from the previous quarter.
Online sales were also strong, with the corporation completing 250 million transactions, a 45% rise from the previous year.
“On the heels of high double-digit like-for-like sales increases across all consumption baskets,
promotional events and holiday shopping “Reliance Retail’s head of strategy and business development, Gaurav Jain, stated during a post-earnings call.
“We see cons spending on discretionary increasing,” Jain said.
- Revenue in the grocery and pharmaceutical industries more than doubled. Consumer electronics, fashion, and lifestyle revenue increased 40% year on year, headed by
- by higher bill values. Digital and new commerce grew 60%, contributing 18% to overall revenue, with daily orders
- growing 53% year-on-year and merchant base scaling up 2 times. • Within fashion, the partner brands which are mainly premium and luxury brands posted revenue
- growth of 80% YoY driven by higher footfalls and store openings.
- Strong festive sales drove 16% YoY growth in the jewellery segment.
- AJIO Luxe, its e-commerce portal in the luxury business, saw a threefold increase in revenues.
- Within consumer electronics, own brand sales are up 2.3 times YoY, merchant base increased by 10% over the last quarter.
- Jio Mart Digital grew 25% QoQ led by phones and large appliances.
- Milkbasket’s daily subscription order has more than doubled since last year.
As the pandemic’s influence faded, the working environment returned to pre-Covid levels, according to Jain. Consumer sentiment was upbeat across the board, he said.
Reliance Retail extended its physical retail network with 795 new store openings covering 9.2 million square feet, up 20% quarter on quarter, bringing the total store count at the end of the quarter to 16,617 covering 54.5 million square feet. This makes Reliance Retail the only Indian retailer with more than 50 million square feet of operational retail space.
It also became the first retailer in India to cross an employee base of four lakh employees, adding over 35,000 jobs during the quarter.
“Going forward, our growth momentum will continue, with a focus on the bigger India opportunity via
ongoing retail growth and digital commerce “Jain stated.