Reliance Industries' retail arm, Reliance Retail Ventures Ltd (RRVL), on Friday reported 29.7 per cent rise in consolidated revenue at Rs 36,566 crore for the second quarter ended September 30, 2020, as compared to Rs 28,197 crore in the previous quarter. The retail business has delivered the second-highest revenues for the Mukesh Ambani-led company despite restricted store operations and lower footfalls amid COVID-19 pandemic.
Reliance Retail's consolidated value of sales and services increased by 30 per cent QoQ to Rs 41,100 crore, even when the full store network was not operational and with footfalls still significantly lower than pre-COVID levels.
On the operational front, EBITDA rose by 85.9 per cent QoQ to Rs 2,006 crore, while EBITDA margin (on revenue from operations) recovered by 170 bps to 5.5 per cent in Q2 FY21 against 3.8 per cent in Q1 FY21. "The robust EBITDA delivery was enabled by a build back of revenue streams and the continued emphasis on cost management," RIL said in a press release.
"Overall, Reliance Retail's 2Q FY21 performance reflects resilience and customer preferences. The business is focused on restoring the momentum to pre-pandemic levels as operating curbs and limitations are relaxed," it said.
During the quarter under review, the company reported robust growth over the previous quarter across all consumption baskets. The strong growth momentum was sustained in grocery and connectivity while consumer electronics and fashion & lifestyle staged a significant recovery. The company also entered the pharma category during the September quarter.
With operating curbs being lifted progressively, store expansion resumed with 232 stores being opened during the quarter, taking the current footprint of the business to 11,931 stores, spread over 29.7 million sq. ft. of retail space.
Meanwhile, parent company, Reliance Industries, reported consolidated profit at Rs 9,567 crore in Q2 FY21, against adjusted profit at Rs 8,380 crore in the June quarter. Consolidated revenue from operations for the quarter came in at Rs 1,16,195 crore.