The retail behemoth also recorded an 18.87% increase in the number of footfalls at its stores at 296 million in the June quarter
New Delhi: Reliance Retail Venture Ltd (RRVL) — the retail arm of billionaire Mukesh Ambani-led Reliance Industries — on Friday reported a 4.63% increase in net profit to Rs 2,549 crore in the June quarter.
The company posted an 8.1% increase in gross revenue to Rs 75,615 crore during the April-June period.
It had reported a gross income of Rs 69,948 crore and profit after tax (PAT) of Rs 2,436 crore for the April-June period a year ago, Reliance Industries Ltd (RIL) said in a regulatory filing.
Reliance Retail’s revenue from operations in the June quarter was up 6.6%t to Rs 66,260 crore from Rs 62,159 crore a year ago.
Digital commerce and new commerce contributed to 18% of the total revenue of the company.
The pre-tax profit (EBITDA) of the country’s leading retailer was also up 10.47% in the first quarter of FY25 to Rs 5,664 crore.
This was “led by an increase in footfall and expansion of store footprint, streamlining of operations driving margin improvement”, RIL said in an earnings statement.
During the quarter, Reliance Retail continued its expansion and opened 331 new stores, taking the total count to 18,918.
With this, the total retail area operated by Reliance Retail also increased 15.15% to 81.3 million sq ft as of June 30, 2024.
RIL Chairman and Managing Director Mukesh Ambani said, “Retail business delivered robust financial results, as compared to last year, well supported by all consumption baskets. With the fast-paced expansion of its retail footprint, Reliance Retail continues to cement its position as the preferred retailer for millions of Indians.”
The digital and new commerce segments are also scaling up rapidly, he added.
Moreover, RRVL also recorded 18.87% increase in number of footfalls at its stores at 296 million in the June quarter. It was at 249 million in the corresponding quarter last fiscal.
Reliance Retail’s registered consumer base also went up 18.35% to 316 million in the June quarter, making it “one of the most preferred retailers in the country,” it said.
In the June quarter, Reliance Retail’s number of transactions also went up 6.36% to 334 million from 314 million in the year-ago period.
“The business continued investments in stores, platform enhancements, product design and sourcing capabilities to further strengthen the value proposition to the customers. These initiatives will help sustain growth momentum in near and medium term,” it said.
In the June quarter, RRVL’s consumer electronics segment also witnessed an increase in customer walk-ins and average bill value. “Digital stores delivered steady growth, led by summer season for ACs, refrigerators and events like T20 World Cup and IPL for TVs,” it said.
Reliance Retail increased products from its own private labels in the consumer electronics segment and added several new products across categories.
In the fashion & lifestyle business, the company focused on refreshing assortment in line with emerging trends and expanding of store footprint.
AJIO, a digital commerce fashion and lifestyle brand, also delivered “steady performance as it expanded its product catalogue by over 20% compared to last year and added over 1.9 million customers”, it added.
It also added new stores to the network of Pret A Manger, a fresh food and organic coffee chain, to further strengthen its F&B business.
Its grocery also delivered “steady growth” and expanded in Tier-2 and beyond cities.
Reliance Retail’s e-commerce arm JioMart delivered “steady performance with average bill value growing by 16% year-on-year”.
“Notably, the non-grocery categories continue to do well with over 50% growth in average bill value led by consumer electronics,” it said.
The consumer brands of Reliance Retail, which has ambitions to become a sizeable FMCG player, continued to deepen its presence in general trade channel which delivered over 150% year-on-year revenue growth.
RRVL Executive Director Isha Ambani said it delivered “resilient performance” in April-June period and strengthened its position.
“The steady expansion and growth of our retail business not only signifies our commitment to customer centricity but also mirrors the resilience and vitality of the Indian growth narrative.
“We continue to make strides in delivering better retail experiences for our customers as we embrace innovation to improve products, processes, and platforms along with integrating advanced technologies,” she said.
