Reliance Retail on Friday reported 36 per cent jump in its consolidated net profit for the September quarter to ₹2,305 crore. The Mukesh Ambani-owned retail chain’s gross quarterly revenue was at ₹64,920 crore, higher by 42.9 per cent YoY. Reliance Retail’s posted a record EBITDA which shot up by 51.2 per cent YoY to ₹4,404 crore.
EBITDA from operations increased 75.9% Y-o-Y to ₹4,286 crore in 2Q FY23, with a 130 basis point margin improvement over the same time last year resulting from favorable mix, positive operating leverage and operational efficiencies.
“Our Retail business delivered record performance with strong revival in footfalls, store additions and digital integration. Reliance Retail continues to provide a compelling proposition of great shopping experience and superior value across consumption baskets and price points,” said Mukesh D. Ambani, Chairman and Managing Director,Reliance Industries Limited
The business delivered record revenue and profits during the quarter led by broad-based growth across all consumer baskets.
The business expanded its physical store network with 795 new store openings with an area of 9.2 mn sq ft, up 20% QoQ taking the total store count at the end of the quarter to 16,617 stores. It has become the only Indian retailer with more than 50 million square feet of retail space under operation.
Reliance Retail received over 180 million footfalls in the quarter, which was a jump of 23 per cent over pre-Covid period.
“The quarter was marked by an operating environment at par with pre-Covid levels as the impact of pandemic waned. Overall, the results reflect strong operational execution that keeps it well poised to deliver sustainable growth in the period ahead,” RIL said.
The company also posted growth in its digital commerce business with daily orders growing 53% YoY.
During the quarter, Reliance Retail acquired a majority stake in Mayuri Kumkum, the company that owns and operates Insight Cosmetics.
The company has signed master franchise agreement with American fashion brand GAP Inc, Tod’s, Pret A Manger, a fresh food and organic coffee chain.