Reliance Retail Ventures on Monday reported a 5.2 per cent rise in net profit to Rs 2,935 crore in the September quarter of financial year 2024-25 (Q2FY25).
Its PBIDT (profit before interest, depreciation and tax) from operations increased 1.0 per cent year-on-year (Y-o-Y) to Rs 5,675 crore. Its PBIDT was largely flat at Rs 5,850 crore.
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The country’s largest retailer’s revenue from operations was down 3.5 per cent Y-o-Y in Q2 to Rs 66,502 crore. The decline was attributed to weak performance in the fashion and lifestyle (F&L) segment and a continued focus on streamlining operations and taking a calibrated approach to B2B business to improve margins.
Mukesh D Ambani, chairman and managing director, Reliance Industries, said in the results release, “The retail segment continues to increase its consumer touch points and product offerings across physical and digital channels.”
He added that the unique omni-channel retail model enables the business to serve a wide range of requirements for a vast, heterogeneous customer base. “The retail business continues to partner with renowned domestic as well as global players, expanding its basket of quality product offerings. The focus on strengthening our retail operations will help us rapidly scale up this business in the coming quarters and years and sustain our industry-leading growth momentum,” he also said.
Reliance Retail continued to expand and opened 464 new stores, bringing its total store count to 18,946, with area under operation at 79.4 million sq. ft.
In the quarter ended September, it recorded footfalls of over 297 million, a growth of 14 per cent Y-o-Y.
The company said its focus on scaling up digital commerce and new commerce continued, with these channels contributing to 17 per cent of total revenue.
“Reliance Retail continues to make investments in technology and infrastructure to build a strong foundation for future growth and maintain market leadership. We continue to strengthen our customer proposition with innovative products that span everyday essentials to premium offerings. By continuously enhancing our assortment and innovating across categories, we are creating a shopping experience that meets the evolving needs of our customers and reinforces our leadership in the retail space,” Isha M Ambani, executive director, Reliance Retail Ventures, said in the results release.
During the quarter, the business entered into exclusive partnerships with Delta Galil to expand presence in lingerie and activewear categories and launched ASOS in India.
In the F&L segment, the company said that the vertical has been scaling up new formats which continue to gain positive traction with customers.
AJIO delivered steady performance as it expanded its product catalogue by over 25 per cent Y-o-Y and added over 1.8 million new customers. Ajio Luxe delivered strong growth, with options count increasing by 28 per cent Y-o-Y and brand portfolio crossing 725 brands.
In the consumer electronics segment, digital stores maintained growth momentum led by a strong increase in average bill value, the company said.
“The business executed the Digital India campaign successfully with a revenue uptick of 60 per cent Y-o-Y as customers benefited from exciting consumer offers and a wide selection of products to choose from,” it said in the release.
resQ, the services business, delivered steady growth with service volume up 28 per cent Y-o-Y, and its own brand introduced several new products across categories even as it continued to grow its merchant base, which was up two times Y-o-Y.
The grocery business saw another quarter of steady growth led by Smart Bazaar and Smart stores. Growth was broad-based across categories, led by increases in confectioneries & snacks (30 per cent Y-o-Y), fruits (26 per cent Y-o-Y), and apparel (49 per cent Y-o-Y).
“JioMart is scaling up its quick commerce pilot by serving customers through its own store network,” the company said, adding that non-grocery categories continue to perform well, with average order value (AOV) growing two times Y-o-Y, led by an uptick in consumer electronics.
The consumer brands business continued to deliver growth across categories, with revenue from general trade growing over 250 per cent Y-o-Y.
First Published: Oct 14 2024 | 8:27 PM IST
