Reliance Retail Q2FY25 results: Net profit rises 5% to Rs 2,935 crore
Reliance Retail Ventures on Monday reported a 5.2 per cent rise in net profit at Rs 2,935 crore in the September quarter of 2024-25 (Q2FY25).
Its profit before interest, depreciation, and tax (PBIDT) from operations increased 1.0 per cent year-on-year (Y-o-Y) to Rs 5,675 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 and it attributed the decline to weak performance in fashion and lifestyle (F&L) and continued focus on streamlining operations and calibrated approach to the B2B business to improve margins.
Mukesh D Ambani, chairman and managing director, Reliance Industries, said in its results release: “The retail segment continues to increase its consumer touch points and product offerings across physical and digital channels.”
He added the unique omni-channel retail model enabled the business to service a wide range of requirements of 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 business in the coming quarters and years and sustain our industry-leading growth momentum,” he said.
Reliance Retail continued to expand and opened 464 stores, taking its total store count at 18,946 with the area under operations at 79.4 million square feet. In the quarter ended September, it recorded footfalls of over 297 million, a growth rate of 14 per cent Y-o-Y. The firm said its focus on scaling up digital commerce and new commerce continued with these channels contributing to 17 per cent of 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 spans 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 the lingerie and activewear categories.
In the F&L segment, the company said the vertical had been scaling up new formats, which gained traction with customers.
AJIO, the digital commerce initiative, expanded its product catalogue by over 25 per cent Y-o-Y and added over 1.8 million customers.
Ajio Luxe delivered strong growth with the options count increasing 28 per cent Y-o-Y and the brand portfolio crossing 725 brands.
In consumer electronics, digital stores saw strong growth in the average bill value.
“The business executed Digital India campaign successfully with a revenue uptick of 60 per cent Y-o-Y as the customers benefited from exciting consumer offers and wide selection of products to choose from,” it said in its release.
resQ, the services business, was up 28 per cent Y-o-Y. Its own brand introduced products across categories even as it continued to grow its merchant base, which was up two times Y-o-Y.
The grocery business grew on the back of Smart Bazaar and Smart stores. It said expansion was broad-based across categories led by increase in confectioneries and snacks (30 per cent), fruit (26 per cent), apparel (49 per cent).
“JioMart is scaling up quick commerce pilot by serving customers through own store network,” the company said, adding the non-grocery categories continued to do well with the average order value growing two times Y-o-Y led by an uptick in consumer electronics.
The consumer brands business expanded with revenue from the general trade growing over 250 per cent Y-o-Y.
First Published: Oct 14 2024 | 8:27 PM IST