Reliance Retail profit hit by coronavirus, EBITDA nearly halves to Rs 1,083 crore
BusinessToday.In July 30, 2020
Reliance Retail's EBITDA (Earnings before Interest, Taxes, Depreciation, and Amortisation) fell by nearly half to Rs 1,083 crore in April-June quarter of this fiscal as against Rs 2,060 crore in the corresponding period of previous year. Net profit for the April-June quarter of fiscal 2020-21 stood Rs 431 crore as stores remaining closed in wake of coronavirus outbreak and only essential services were operational. Cash profit for the quarter was recorded at Rs 793 crore, RIL said in an exchange filing on Thursday. Revenue for the quarter was Rs 31,633 crore.
"The quarter saw 21% growth year on year across the operational businesses of grocery and connectivity," RIL said. Due to stores remaining closed, the performance of the consumer electronics and fashion and lifestyle businesses were negatively impacted during the quarter under review.
"While store expansion remains a thrust for the business, with activity being largely suspended in the lockdown period, the business was able to open 69 new stores during the quarter. Over 250 stores across formats and geographies were in various stages of development before activity was restricted and these will be commissioned in due course," it added.
Meanwhile, Reliance Industries Limited (RIL) reported a 31.16 per cent rise in consolidated profit at Rs 13,248 crore, including one time gain of Rs 4,966 crore, in April-June quarter of fiscal 2020-21 as against profit of Rs 10,104 crore in the corresponding period of last year. Revenue of Mukesh Ambani-led oil-to-telecom conglomerate stood at Rs 1,00, 929 crore in the quarter under review.