Reliance Retail Q2 results: Firm sees improved profitability, adds 6 crore new consumers
The largest retail company in the country expands EBITDA margin ahead of its IPO preparations
- Oct 27, 2023,
- Updated Oct 27, 2023 10:13 PM IST
Reliance Retail Ventures Ltd (RRVL), the retail arm of the diversified Reliance Group, significantly improved its profitability during the recently concluded September quarter. The Mumbai-based retail giant also added a massive number of consumers to its network, the company said on Friday.
RRVL, which holds major retail initiatives of the conglomerate like Reliance Retail Ltd. (RRL), reported a 32.2 per cent jump in its earnings before interest, tax, depreciation and amortisation (EBITDA) - up from Rs 4,286 crore in Q2FY23- at Rs 5,607 crore in the last quarter. While its operating revenue grew 19.5 per cent to Rs 68,937 crore in Q2FY24.
This resulted in an 80 basis points (bps) improvement in RRVL’s EBITDA margin, which stood at 8.4 per cent from its previous range of 7.6 per cent in Q2FY23, despite its depreciation (cost) increasing on account of “higher asset base due to addition of new stores and supply chain infrastructure”. According to the company, EBITDA margin growth was “driven by operating leverage and continued focus on cost management”.
“Reliance Retail has continued to rapidly expand its offline as well as online presence, while adding to its already impressive range of products and offering. We are providing a fresh and friendly shopping experience across our seamless ecosystem. The strength and diversity of our Retail business model is consistently delivering robust performance,” said Mukesh D Ambani, Chairman and Managing Director, Reliance Industries Ltd (RIL). RRVL is subsidiary of RIL, which owns majority stake in the company.
During the quarter, RRVL managed to add 60 million new consumer to its network of retail brands and platforms. In Q2FY24, RRVL’s registered consumer base rose to 281 million - up from 221 million in the same quarter previous year - growing 27.1 per cent year-on-year. Total footfalls in Reliance-owned retail stores grew by an impressive 40.5 per cent to 260 million. The company added 471 new stores under its fold in Q2, taking the total store count of RRVL to 18,650.
Among its major business segments, the grocery business continued to grow at the fastest pace - growing 33 per cent y-o-y. While fashion and lifestyle business expanded by 32 per cent, filled by the consumer electronics business (grew 11 per cent y-o-y).
Also Read: RIL Q2 results: Net profit rises 27% to Rs 17,394 cr
Reliance Retail Ventures Ltd (RRVL), the retail arm of the diversified Reliance Group, significantly improved its profitability during the recently concluded September quarter. The Mumbai-based retail giant also added a massive number of consumers to its network, the company said on Friday.
RRVL, which holds major retail initiatives of the conglomerate like Reliance Retail Ltd. (RRL), reported a 32.2 per cent jump in its earnings before interest, tax, depreciation and amortisation (EBITDA) - up from Rs 4,286 crore in Q2FY23- at Rs 5,607 crore in the last quarter. While its operating revenue grew 19.5 per cent to Rs 68,937 crore in Q2FY24.
This resulted in an 80 basis points (bps) improvement in RRVL’s EBITDA margin, which stood at 8.4 per cent from its previous range of 7.6 per cent in Q2FY23, despite its depreciation (cost) increasing on account of “higher asset base due to addition of new stores and supply chain infrastructure”. According to the company, EBITDA margin growth was “driven by operating leverage and continued focus on cost management”.
“Reliance Retail has continued to rapidly expand its offline as well as online presence, while adding to its already impressive range of products and offering. We are providing a fresh and friendly shopping experience across our seamless ecosystem. The strength and diversity of our Retail business model is consistently delivering robust performance,” said Mukesh D Ambani, Chairman and Managing Director, Reliance Industries Ltd (RIL). RRVL is subsidiary of RIL, which owns majority stake in the company.
During the quarter, RRVL managed to add 60 million new consumer to its network of retail brands and platforms. In Q2FY24, RRVL’s registered consumer base rose to 281 million - up from 221 million in the same quarter previous year - growing 27.1 per cent year-on-year. Total footfalls in Reliance-owned retail stores grew by an impressive 40.5 per cent to 260 million. The company added 471 new stores under its fold in Q2, taking the total store count of RRVL to 18,650.
Among its major business segments, the grocery business continued to grow at the fastest pace - growing 33 per cent y-o-y. While fashion and lifestyle business expanded by 32 per cent, filled by the consumer electronics business (grew 11 per cent y-o-y).
Also Read: RIL Q2 results: Net profit rises 27% to Rs 17,394 cr