Reliance Retail Q1 results: Profit jumps 28.3% to ₹3,271 crore | Company Business News-OxBig News Network

New Delhi: Reliance Retail Ventures Ltd, Reliance Industries Ltd’s retail arm, on Friday reported a consolidated profit of ₹3,271 crore for the April-June first quarter, up 28.3% from a year ago. Revenue from operations grew 11.3% year-on-year to ₹73,720 crore.

Reported ebitda at ₹6,381 crore was up 12.7% year-on-year, while ebitda margin improved further by 20 bps year-on-year to 8.7%. Ebitda, a measure of core operations, stands for earnings before interest, taxes, depreciation, and amortization.

Reliance Retail operates across categories such as grocery, consumer electronics, fashion and lifestyle, and online commerce.

All segments performed well, with market leading performance in grocery and fashion. Consumer electronics and devices, however, were impacted due to the early onset of monsoons, the company said in a statement Friday.

Expanded store network

Reliance Retail expanded its store network with 388 new store openings during the first quarter, taking its total store count to 19,592. Its area under operation at 77.6 million sq.ft in the first quarter was up marginally from the preceding March quarter but down 4.6% year-on-year.

Online commerce platform, JioMart, continued to expand quick hyperlocal deliveries, registering a 175% year-on-year growth in daily orders during the first quarter.

“Reliance Retail delivered strong growth in revenue and profits, powered by improved efficiencies, innovative formats, a sharper product mix, and continued investments in technology and customer experience,” Isha M. Ambani, executive director, Reliance Retail, said.

The company’s fashion and lifestyle business witnessed growth in first-quarter revenue and ebitda driven by new store formats and strong performance of its in-house brands. The company’s consumer electronics business reported overall growth, but sales of air conditioners were impacted due to the early onset of monsoon.

Reliance Retail on Friday also announced the acquisition of the home appliances brand Kelvinator for India from the Swedish manufacturer Electrolux AB after holding manufacturing and distribution rights for the brand since 2019.

The company’s online fashion platform, AJIO, launched Rush, its 4-hour delivery service, during the first quarter. The service is live in six cities, matching rivals such as Myntra that also offer quick deliveries. The brand’s Luxe platform continued to grow and launched several brands during the quarter, taking its portfolio to 875 brands.

“With faster deliveries, the initiative will further improve customers’ shopping experience on the platform. The initiative is delivering better unit economics driven by higher average bill value and lower returns,” Reliance Retail said.

The company’s fast-fashion brand, Shein, continued to receive strong traction and has crossed 2 million app downloads. Premium brands business continued to lead the segment with the widest portfolio of brands.