Reliance Retail’s strong Q1 results show retail buoyancy
By Retail4Growth Bureau | July 25, 2022
The company has announced that it has posted the best ever quarterly revenue at ? 58,554 crore ($ 7.4 billion), up 51.9% Y-O-Y and with a net profit of ? 2,061 crore ($ 261 million), higher by 114.2% and that 792 stores opened during the quarter with 45.5 million sq. feet area of operation as compared to 34.5 million sq. feet in the corresponding quarter of the previous year.
Reliance Industries’ recently released financial results for the quarter ended June 2022 shows that its retail division Reliance Retail has delivered strong performance bolstered by many factors.The company said in its statement that it delivered a strong performance with its best-ever quarterly revenues in a macro environment that remained challenging.
A quick look at the consolidated results of RELIANCE RETAIL:
Gross Revenue for the quarter was ₹ 58,554 crore ($ 7.4 billion), higher by 51.9%
EBITDA for the quarter was ₹ 3,837 crore ($ 487 million), higher by 97.8%
Net Profit for the quarter was ₹ 2,061 crore ($ 261 million), higher by 114.2%
Cash Profit for the quarter was ₹ 2,873 crore ($ 364 million), higher by 105.2%
Total 15,866 physical stores operational; 792 stores opened during the quarter
Area of operation – 45.5 million sq. feet as compared to 34.5 million sq. feet in the corresponding quarter of the previous year.
Commenting on the results, Mukesh D. Ambani, Chairman and Managing Director, RelianceIndustries Limited said: “In Retail business, we continue to focus on enhancing our consumer touch-points and building a stronger value proposition for our customers. Our strong supply chain infrastructure and sourcing efficiency is helping us maintain competitive pricing for daily essentials, thereby insulating consumers from inflationary pressures.”
Performance for the quarter 1Q FY23 as shared by Reliance Retail :
- Business witnessed its first quarter without any operating disruptions since the onset of COVID.
- Consumer spending got a boost as families indulged in leisure activities, socializing, festivities and shopping as COVID situation improved though sentiments remained cautious due to inflationary concerns.
- Footfalls recorded at 175 mn for the quarter, were 19% above pre-COVID levels as consumers returned to stores.
- The increased footfalls and digital visits have translated into ~220 mn transactions in 1Q FY23, a growth of more than 60% over pre-COVID levels.
- 792 store openings in the quarter, and spread of 15,866 stores with an area of 45.5 million sq ft covering all corners of the country.
- The business continues to bolster its supply chain capabilities with addition of 79 warehousing and fulfillment locations measuring 3.3 million sq ft of space added during the quarter.
- Even as stores return to normal operations, the digital commerce platforms continue to grow from strength to strength with daily orders up 64% Y-o-Y.
- Digital and New Commerce grew >2x over last year and contributed about 19% of Gross Revenue.