Reliance Retail Q2FY24 PAT grows 21% YoY to Rs 2,790 cr

The company reported gross revenue of Rs 77,148 crore, marking an 18.8 percent YoY increase from Rs 64,920 crore in the same quarter of the previous year.

This growth was well-distributed across various consumption categories.

The Grocery and Fashion & Lifestyle segments demonstrated robust growth, while Consumer Electronics showed consistent performance despite the festive season falling in 3Q FY24.

Reliance Retail achieved an EBITDA of Rs 5,820 crore, reflecting a 32.2 percent YoY increase.

The EBITDA margin from operations on net sales rose to 8.1 percent, up by 70 bps YoY, driven by operational efficiencies and a sustained focus on cost management.

"I am delighted to report that we have delivered yet another quarter of stellar performance and achieved an all-time high across financial matrices. The performance is a testament to our customer-centric approach that defines Reliance Retail and we look forward to serving our customers this festive season with renewed optimism and enthusiasm." said Isha M. Ambani, Executive Director, Reliance Retail Ventures Limited.

During the quarter, the company expanded its retail footprint by adding 471 new stores, bringing the total store count to 18,650, covering 71.5 million sq ft. Footfall increased by 40.5 percent year-on-year, surpassing 260 million across all formats. Additionally, revenue from Digital Commerce and New Commerce segments accounted for 19 percent of the total revenue.

Reliance Retail garnered strong support from global investors, securing Rs. 15,314 crore in the recent funding round. On October 25, 2023, the company completed the asset transfer to a warehouse InvIT entity, valued at Rs. 5,150 crore, recorded under Other Financial Assets as of September 30, 2023.

The Consumer Electronics division recorded an 11 percent growth from the previous year, boosted by the "Digital India Sale" on August 15. New Commerce expanded its merchant partnerships by 44 percent year-on-year, with notable growth in phones and high-end televisions.

Fashion & Lifestyle business achieved an impressive 32 percent year-on-year growth. The offline business demonstrated robust growth despite the festive season primarily falling in the next quarter.

The Grocery segment saw a record 33 percent year-on-year growth, driven by the Smart and Smart Bazaar formats. Festivals like Raksha Bandhan, Onam, Janmashtami, and Ganpati witnessed strong shopping, particularly in gift packs and festive categories.

Consumer brands experienced growth, particularly in beverages, general merchandise, and staples. Emphasis on expanding distribution in the General Trade channel led to a fourfold year-on-year revenue increase. Beverages saw a sevenfold revenue surge year-on-year, with 'Campa' gaining popularity among traders and consumers. The introduction of 'Campa Cricket' was timed to leverage the ICC World Cup event.

JioMart continued its growth trajectory with a notable increase in traffic and average bill value. The platform also bolstered its catalogue, with option count tripling over the previous year, and expanded its seller base twofold over the same period.

“Reliance Retail has continued to rapidly expand its offline as well as online presence, while adding to its already impressive range of products and offering. We are providing a fresh and friendly shopping experience across our seamless ecosystem. The strength and diversity of our Retail business model is consistently delivering robust performance,” said Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited.