Reliance Retail profit up by a record 52% in Q1

Reliance Industries Limited’s retail arm, Reliance Retail, has clocked 52 per cent year-on-year growth in revenue at ₹58,569 crore for the quarter ended June 2022.

Reliance Retail’s net profit for the quarter was ₹2,061 crore, higher by 114.2 per cent. Its assets for the quarter were at ₹122,643 crore compared to ₹101,795 crore in the same time last year.

“Fully normalised quarter since the onset of Covid which helped us complete operations. Growth was led by mall opening, weddings and festivals. Consumer sentiments remain optimistic but cautious on discretionary spends,” said Gaurav Jain - Head - Reliance Retail.

The total operational physical stores were 15,866, and Reliance Retail opened 792 stores during the quarter. “Footfalls recorded at 175 million for the quarter, were 19 per cent above pre-Covid levels as consumers returned to stores.  The increased footfalls and digital visits have translated into ~220 million transactions in Q1 FY23, a growth of more than 60 per cent over pre-Covid levels,” the company said on Friday.

“I am happy with the progress of our consumer platforms. In retail business, we continue to focus on enhancing our consumer touch-points and building a stronger value proposition for our customers. Our robust supply chain infrastructure and sourcing efficiency is helping us maintain competitive pricing for daily essentials, thereby insulating consumers from inflationary pressures,” Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited, said.

During the quarter, Reliance Retail consolidated its leadership position in fashion & lifestyle as it delivered a strong revenue growth of 3x over last year driven by regional festivities & promotions resulting in all time high average bill values and healthy conversions.

Reliance Retail also includes fashion platform Ajio. It has been acquiring multiple brands. “In the luxury / premium brands, the business grew ~5x over last year driven by fully operational mall stores and in-store events. The business through AJIO Luxe scaled up >6x over last year with presence of nearly 400 brands and >38,000 options on the platform,” it said. 

Reliance Retail also includes a strong grocery business with Jiomart. “Grocery business had a buoyant quarter as it recorded its highest ever revenues and doubled its business over last year led by broad based growth across all categories,” it said. 

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