Companies

Reliance Retail profit up by 123 per cent in Q1

Our Bureau Mumbai | Updated on July 24, 2021

Revenue for the quarter grew by 22 per cent to ₹38,547 crores

Even though Reliance Retail’s store operations were impacted because of Covid-19 related restrictions, the company’s net profit was up by 123 per cent to ₹962 crore during the first quarter ended June 30.

Its revenue from operations for the quarter grew by 22 per cent to ₹38,547 crores.

Shrikanth Venkatachari, the joint Chief Financial Officer of Reliance Industries, said that: “Footfalls during the quarter were at 46 per cent of pre-Covid period and were comparable to the same period last year but significantly lower than 88 per cent footfalls in preceding quarter. Consumer sentiment has remained cautious with a hint of revival towards the end of the quarter. The numbers are similar to Q1 of last year.”

Reliance Industries Ltd’s Chairman Mukesh Ambani said, “Covid-related restrictions on store operations during the quarter impacted our Retail business operations and profitability. This is a temporary phenomenon.”

In its statement, Reliance said: “Store expansion was constrained during the quarter as the business opened 123 stores taking the total count to 12,803. Another 700+ stores in the pipeline will be commissioned as curbs are lifted.”

However, Reliance Retail remained focused on supplies of necessities, including food, grocery, health & hygiene products through a combination of online-offline channels. “We stepped up our efforts in creating partnerships with small merchants and digital engagement with consumers. This is creating a newer and inclusive model of growth. I am confident that the retail business is poised to create exponential value and growth.”

It is also focusing on scaling up its digital commerce and merchant partnerships helped partially alleviate the loss of business due to store closures. These streams contributed a sizable 20 per cent of retail sales in the quarter.

Last month, RIL announced its partnership with Google Cloud. “Google Cloud’s scalable infrastructure would also enable Reliance Retail to achieve better operational efficiency, modernise and scale for growth, and deliver better experiences to customers,” the company said.

Published on July 24, 2021

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