Reliance Retail Q2 Results: Fashion And Lifestyle Segment Drives Business To Pre-Covid Levels
Net profit of the retail arm of Reliance Industries increased 76% sequentially to Rs 1,695 crore in the quarter ended September.
Reliance Retail Ltd.'s quarterly profit and revenue rose to pre-pandemic levels, driven by its fashion and lifestyle segment
Net profit of the retail arm of Reliance Industries Ltd. increased 76% sequentially to Rs 1,695 crore in the quarter ended September, the company said in an exchange filing. Revenue rose 19% over the preceding quarter to Rs 39,926 crore.
“The quarter saw robust growth across all consumption baskets led by distinctive improvement in consumer sentiments amid festivities,” Dinesh Thapar, chief financial officer of Reliance Retail said on Friday.
The three months through September, according to Thapar, was a "record quarter” for the company's fashion and lifestyle segment, whose growth doubled sequentially and sales peaked past the pre-pandemic levels.
Highlights (QoQ)
Operating profit rose 50% to Rs 2,913 crore.
Ebitda margin came in at 7.3% versus 5.8%.
89% of stores now operational compared with 61% in Q1.
Footfalls recovered to 78% of pre-Covid levels compared to 46% last quarter.
Digital commerce and merchant partnership at new highs; most orders across AJIO and JioMart.
JioMart was extended to 249 cities.
Digital and new commerce contributed to 20% of total sales. Reliance Retail, which operates retail formats across consumer electronics, fashion and lifestyle, grocery and pharma, added 813 stores in Q2, taking total store counts to 13,635. In June this year, Reliance had said that Ajio contributes 25% to its retail arm's apparel business.
During the three-months period, Reliancedigital.in was extended to over 2,000 cities and 90% of the deliveries from stores was done in less than 6-hours, Thapar said while presenting the results. “More than half of the orders on this platform come from tier 2 and below towns.”
Smart Superstore, a destination supermarket store that offers fresh produce, bakery, dairy products, general merchandise, home and personal care, apparel and appliances crossed a milestone of 400 stores with more than 200 stores added in the last two years. More than 50% of the stores are in non-metros.
Among new businesses, pharma commissioned 423 new stores during the quarter and expanded product portfolio with an addition of 15,000 SKUs across 450-plus brands. That apart, the consumer electronics stores posted “strong double-digit” growth led by improving operating environment and opening of malls, the company said. Premium brands grew twofold over the previous year.
Reliance Retail have been bolstering its portfolio through acquisitions.
It bagged Milkbasket, a subscription-based grocery delivery platform, Portico, India’s leading home styling solutions brand and JustDial, a leading local search engine platform. Reliance has also been expanding its luxury portfolio with homegrown designers. It recently bought a controlling stake in Ritu Kumar.