Reliance Retail Q3 net profit at ₹1,830 cr
Its revenue from operations, however, fell 9.7% q-o-q to ₹33,018 crore
New Delhi: Reliance Retail Ventures Ltd reported a net profit of ₹1,830 crore for the December quarter, a sharp 88.1% sequential rise, driven by near-double growth in fashion and lifestyle earnings, and continued benefits of cost-management initiatives.
Its revenue from operations, however, fell 9.7% quarter-on-quarter (q-o-q) to ₹33,018 crore “in an environment that remains challenging with sporadic covid-related restrictions and local issues", the retail firm’s parent Reliance Industries Ltd (RIL) said in a statement
Operating revenue (earnings before interest, tax, depreciation and amortization) was ₹3,087 crore during the quarter, compared to ₹2,006 in July-September, while Ebitda margin stood at 7%, coming in ahead of the previous quarter and the year-ago period.
“With the Indian economy poised for a rapid recovery in 2021 after overcoming the Covid-19 constraints, Reliance Retail is confident of maintaining its industry leading and market beating performance," RIL said.
The company said Covid-related curbs on store operations eased during the quarter, with 96% of its outlets reopening, but only half of them functioning fully. Stores in smaller towns are recovering faster, RIL said, adding that overall footfall was similar to the previous quarter and is still lower than the pre-covid levels.
Overall revenue, apart from being hit by challenging operating conditions, was impacted by the transfer of fuel retail business to the RIL-BP India joint venture and the decision to convert Reliance Market stores to fulfilment centers, RIL said.
Reliance Retail’s grocery business and electronics stores sustained double-digit growth, while the fashion and lifestyle segment rebounded sharply, surpassing pre-covid levels. The company opened 327 new retail stores during the quarter, taking the total to 12,201.
The growth momentum for digital commerce across portfolio, traffic and customer base continued during the December quarter, with orders up 12 times year-on-year.
“New commerce which seeks to foster the spirit of entrepreneurship via a model of shared prosperity and inclusive growth is well underway and making steady progress," it said.
As of 31 December, the retail business partnered over a million merchants across consumption baskets with plans to accelerate this in the days ahead.
Reliance Retail acquired 96% equity stake in Urban Ladder Home Décor Solutions Pvt Ltd for about ₹182 crore during the quarter. The company has an option to buy the remaining 4% stake, taking its shareholding to 100% of the equity share capital in UrbanLadder.
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