Reliance Retail on Friday reported over two-fold jump in pre-tax profit at Rs 3,897 crore for June 2022 quarter, led by higher contribution from fashion & lifestyle and consumer electronics business.
The retail arm of Reliance Industries Ltd (RIL) said it had posted a pre-tax profit or EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) of Rs 1,390 crore in the April-June quarter of FY21.
Its revenue from operations of the organised retail segment was up 53.67 per cent to Rs 51,582 crore in the latest June quarter, from Rs 33,566 crore in the year-ago period.
Gross revenue, which includes the value of sales and services, was up 51.90 per cent to Rs 58,554 crore in the three months ended June 2022. It was at Rs 38,547 crore in the corresponding quarter a year ago.
“Reliance Retail delivered a strong performance with its best-ever quarterly revenues in a macro environment that remained challenging,” said RIL in its earnings statement.
The business posted an operating EBITDA of Rs 3,897 crore (USD 493 million), up 180.35 per cent year-on-year with a 350-bps (basis points) improvement in the margin at 7.6 per cent compared to 4.1 per cent in the corresponding quarter of the previous year, said RIL.
“This was led by higher contribution from fashion & lifestyle and consumer electronics and growing operating leverage with strong LFL growth over last year across consumption baskets,” it said In the April-June quarter, Reliance Retail added 792 stores to seize the large market opportunity in the country by expanding its presence across geographies.
“With 792 store openings in the quarter, the spread of 15,866 stores with an area of 45.5 million square feet covers all corners of the country,” it said.
As of June 30, 2022, Reliance Retail was operating on 45.5 million sq ft, which was 31.88 per cent higher than the corresponding quarter. It was operating 34.5 million sq ft in the April-June quarter of FY22.
“The business continues to bolster its supply chain capabilities with the addition of 79 warehousing and fulfilment locations measuring 3.3 million sq ft of space added during the quarter,” it said. PTI KRH HVA
