Headwinds due to the Omicron wave in January 2022 dragged down Reliance Retail’s net profit by 4.8 per cent during the fourth quarter of FY 22, to ₹2,139 crore. The consolidated revenue was up by 23 per cent in the Q4 of FY 22 at ₹58,019 crore compared with ₹47,085 crore the same period last year. 

The company acknowledged that it faced headwinds in January. “Reliance Retail delivered its best-ever quarterly revenues even surpassing the festive quarter performance despite the challenges posed by the spread of Omicron wave and coming out from the festive quarter.” 

However, “the headwinds posed by the Covid situation in January were offset by the robust growth in February and March as the business leveraged festive events and early setting of summer season,” it added.

Reliance Retail’s assets grew to ₹124,736 crore in this quarter compared to assets amounting to ₹98,361 crore the same time last year. While its assets grew, so did its liabilities. For the last quarter of FY22, its liabilities were ₹36,031 crore compared to ₹20,879 crore in the corresponding year. 

15,196 operational stores

The company had a total 15,196 physical stores operational with 793 stores opened during the quarter. Area of operation increased to 41.6 million sq. feet as compared to 33.8 million sq. feet in the corresponding quarter of the previous year.

For the full year, gross revenue was ₹199,704 crore higher by 26.7 per cent EBITDA for the year was ₹ 12,381 crore, higher by 26.5% Net Profit for the year was ₹ 7,055 crore, higher by 28.7 per cent. The company added 2,566 stores during the full year. Registered users for physical and digital retail stood at 193 million users up 24 per cent y-o-y.

Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries said: “Despite the ongoing challenges of the pandemic and heightened geo-political uncertainties, Reliance has delivered a robust performance in FY2021-22. I am pleased to report strong growth in our digital services and retail segments. Our retail business has crossed the 15,000 store benchmark.”

This is despite Covid restrictions in place during the year with 87 per cent of the stores operational and 81 per cent of footfalls recorded at stores as compared to pre-Covid levels. “As operating environment improved progressively, the pace of new store expansion resumed. During the year, over 2,500 stores were opened taking the total count to 15,196 stores with a total area of 41.6 million sq,” he said

Acquisition spree

Reliance Retail has been on an acquisition spree. It acquired Clovia, leading women’s intimate wear brand to bolster its lingerie brand portfolio. Further Reliance Retail has acquired stake in Indian designer wear brands– AK-OK, Abraham & Thakore, Abu Jani Sandeep Khosla and formed a JV for a new brand with Rahul Mishra during the quarter.