Mukesh Ambani-backed Reliance Retail’s net profit jumps 30% to Rs 9,181 cr in FY23 on higher footfalls at stores

India’s largest retailer Reliance Retail’s net profit jumped 30% to Rs 9,181 crore for the full financial year 2022-23 over the previous year, with an equal growth in its gross revenue to a whopping Rs 2.6 lakh crore, driven by higher footfalls at its expanded network of stores after the Covid pandemic.  

Billionaire Mukesh Ambani-owned conglomerate Reliance Industries Limited’s retail business, which spans consumer electronics, grocery and fashion & lifestyle, grew its net profit by 30% from Rs 7,055 crore at the end of FY22 and its gross revenue grew 30% from Rs 1.99 lakh crore in FY22.

Reliance Retail Limited – which is operated by the holding company Reliance Retail Ventures Limited, a subsidiary of Reliance Industries Limited – accounts for more than a quarter of the diversified conglomerate’s consolidated revenue of Rs 9.76 lakh crore

In the first full financial year free of lockdowns since the Covid pandemic, the business added 3,300 new stores to take the total store count at the end of the year to 18,040 stores. Its stores witnessed a 50% jump in footfalls year-on-year at 78 crores, while its registered customer base grew 29% Y-o-Y to reach 24.9 crore.  

Reliance Retail operates 22 sub-brands across categories. Its digital commerce and new commerce businesses, which include the likes of AJIO and JioMart, contributed 18% of the revenue, the company noted.  

“Retail business registered excellent growth numbers backed by expansion of physical and digital footprint and a significant increase in footfall. We continue to expand our product base across consumption baskets, ensuring our customers get world-class products at affordable prices. Our retail team has an unwavering focus on enhancing consumer experience and ease of shopping,” said Mukesh  Ambani, Chairman and Managing Director, Reliance Industries Limited.

Category-wise, the company said its consumer electronics’ revenue grew 35% year-on-year, while fashion & lifestyle delivered a revenue growth of 19% year-on-year led by wedding season and festivals resulting in higher bill values and improved conversions. The grocery business delivered robust revenue growth led by growth across categories, it said.

The company, which acquired a majority stake in online pharmacy Netmeds, said its pharma business showed steady growth across channels and geographies.

Isha M Ambani, Executive Director, Reliance Retail Ventures Limited, said: “Reliance Retail continues on the path of registering industry leading growth year after year at a scale unmatched in India. At Reliance Retail we remain committed to delivering exceptional value to our customers while driving sustainable growth for our business and various stakeholders in the ecosystem. Our focus on customer-centricity backed by investments in technology, innovation and new business segments have helped us create operational excellence and steer the transformation of India’s retail sector."

In FY23, the retail business forayed into FMCG and beauty businesses with the launch of cola brand ‘Campa’ and digital commerce platform ‘Tira’. Reliance Retail also acquired and partnered with notable brands such as Metro, GAP, Catwalk, Centro Footwear, Insight Cosmetics, Sunglass Hut, Tods, Pret a Manger, Sosyo, and Lotus chocolates. It also launched new format stores such as Smart Bazaar, Azorte, Centro, Fashion Factory and Portico.

During the March quarter, Reliance Retail witnessed a record 219 million footfalls across formats and geographies. It posted net profit of Rs 2,415 crore at 12.9% growth Y-o-Y and gross revenue of Rs 69,267 crore at 19% Y-o-Y growth. The grocery business grew 66% Y-o-Y, the fashion and lifestyle grew 19% Y-o-Y and consumer electronics (excluding devices) grew 37% Y-o-Y.

RIL ventured into organised retail in 2006 with Reliance Fresh.