Reliance Retail Q4 Results: Profit Up 11.7%, Revenue At Rs 67,610 Crore
The net profit of Reliance Retail Ventures rose 11.7% over the previous year to Rs 2,698 crore in the quarter-ended March.
Reliance Retail Ventures Ltd.’s fourth quarter net profit and revenue rose, but missed estimates, led by store expansion and higher footfalls.
The net profit of India's biggest retailer increased 11.7% over the previous year to Rs 2,698 crore in the quarter-ended March, according to an exchange filing by its parent company, Reliance Industries Ltd.
Reliance Retail Q4 FY24 Earnings Highlights (YoY)
Revenue from operations (net of GST) rose 9.8% to Rs 67,610 crore.
Ebitda surged 18.1% to Rs 5,623 crore.
Gross revenue increased 10.6% to Rs 76,627 crore.
Margin expanded to 8.6% from 8%.
Depreciation surged 22.2% to Rs 1,452 crore due to higher asset base on the back of addition of new stores and supply chain infrastructure.
Higher finance cost, up 19.2%, was on account of increase in interest rate and borrowings for business expansion.
The quarter recorded footfalls of 272 million across formats, a growth of 24.2% over the previous year, according to the statement. The total number of transactions rose 6% year-on-year to 311 million in Q4.
During the January–March quarter, Reliance Retail expanded its store network with 562 new openings, taking the total store count to 18,836 with an area of 79.1 million square feet.
"Robust expansion and growth of our retail business signifies our commitment to customer centricity and confidence in India’s consumption story," said Isha Ambani, executive director, Reliance Retail Ventures.
For the full fiscal, Reliance Retail's net profit rose 21% to Rs 11,101 crore. Its annual profit crossed the Rs 10,000 crore mark for the first time.
Net revenue for the year stood at Rs 2.73 lakh crore, up 18% year-on-year.
In FY24, the grocery business clocked the highest growth at 31%, followed by fashion and lifestyle (23%) and consumer electronics (18%), said Dinesh Taluja, chief financial officer at Reliance Retail during a post-earnings call.
Premium categories are driving growth for the retailer while demand in mass segments remain under pressure, according to Taluja.
In the grocery segment, for instance, the retailer experienced a shift to products like millets over wheat and liquid detergents over soap bars.
During the fiscal, Reliance Retail raised Rs 17,814 crore in equity funds, including a Rs 2,500 crore infusion by its parent in the final quarter.