Reliance Retail Q2 results: Net profit rises 21% to Rs 2,790 crore, revenue up 19.5%

Reliance Retail, the retail arm of Reliance Industries, reported a 21 per cent increase in net profit to Rs 2,790 crore in the quarter ended September 30, 2023, compared to Rs 2,298 crore in the corresponding quarter last year. Revenue from operations increased 18.8% to Rs 77,148 crore from Rs 64,920 crore in the same period last year.

The growth in net profit and revenue was driven by strong performance across all categories, including grocery, fashion and lifestyle, electronics, and home improvement. 

Considering the 3Q FY24 festive season, Reliance Retail maintained a strong momentum despite the period, with the Grocery and Fashion & Lifestyle sectors being the prime engines for this growth. 

Meanwhile, the Consumer Electronics sector demonstrated consistency in its performance. With an EBITDA of Rs 5,820 crore, Reliance Retail witnessed a 32.2 per cent growth on a YoY basis. The EBITDA margin from operations on net sales was clocked at 8.1 per cent, a YoY increase of 70 bps. 

Reliance Retail also continued to expand its reach during the quarter. The company opened 818 new stores, taking its total store count to 17,446. The company also expanded its online presence, with its e-commerce business growing 22.3 per cent year-on-year.

During the quarter, the company launched 471 new stores, increasing the total number of outlets to 18,650, spanning an area of 71.5 million sq ft. Footfalls increased by 40.5 percent year on year in the third quarter, hitting over 260 million across all forms. Meanwhile, revenue from Digital Commerce and New Commerce enterprises increased, accounting for 19 per cent of overall sales.

"I am delighted to report that we have delivered yet another quarter of stellar performance and achieved an all-time high across financial matrices. The performance is a testament to our customer-centric approach that defines Reliance Retail and we look forward to serving our customers this festive season with renewed optimism and enthusiasm." said Isha M. Ambani, Executive Director, Reliance Retail Ventures Limited.

The Fashion & Lifestyle segment grew by 32 per cent year on year. Despite the fact that the holiday season falls entirely in the next quarter, offline business grew strongly.

Grocery sales increased by 33 per cent year on year, mostly due to the Smart and Smart Bazaar formats. Festivals such as Raksha Bandhan, Onam, Janmashtami, and Ganpati saw increased shopping, particularly in gift packs and festive categories.

The Consumer Electronics division has reported an 11 percent growth from the previous year, fuelled by various successful strategies including product diversity and marketplace offerings. The company saw an increase during their "Digital India Sale" on August 15, with year-on-year growth skyrocketing to 23 percent. 

Consumer brands grew, particularly in beverages, general products, and essentials. The company focused on extending distribution in the General Trade channel, resulting in a fourfold rise in sales year over year. Beverages income increased sevenfold year on year, with 'Campa' gaining appeal among dealers and customers. 'Campa Cricket' was established to capitalise on the ICC World Cup event.

“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 Limited.

Also Read: RIL Q2 results: Net profit rises 27% to Rs 17,394 cr