Reliance Retail’s Q4 earnings are anticipated to exceed Rs 70,000 crore.
Reliance Retail revenues may cross Rs 70,000 crore in terms of topline in the quarter ended March (Q4FY23), a growth of nearly 22% versus the previous year, according to Nomura. The company will disclose its financial numbers on Friday along with its parent Reliance Industries (RIL).
Retail along with telecom has been powering the growth of the diversified conglomerate for many quarters now, and Q4 is expected to be no different, analysts tracking the company said.
Brokerage Nomura also expects the company’s earnings before interest tax depreciation and amortisation (Ebitda) to grow 31.5% versus last year to Rs 4,872 crore, on the back of aggressive store expansion and benefits of operating leverage.
Typically, the March quarter sees a slump in business for retailers after the crucial October-December period (Q3), which is the festive quarter in India. As a result, sequentially, Reliance Retail may see topline and Ebitda growth of 4.7% and 4.6%, respectively, versus the December quarter, according to estimates by analysts at Nomura, JP Morgan and Jefferies.
“Following its announcement to enter FMCG during the Reliance’s AGM in August 2022, Reliance Retail has started building a portfolio of consumer products and is also piloting regional launches. In the beverage category, it is relaunching Sosyo in Gujarat at the Rs 10 price point and is also relaunching Campa Cola in South India,” the brokerage said.
The company is also bringing ice-cream to Gujarat and has plans to scale up its launches in snacks, beverages, personal and household care, sector experts said.
Apart from this, Reliance Retail may provide an update on the integration of Metro AG’s India business that came into the company’s fold in Q4. The business was acquired for Rs 2,850 crore in December 2022.
Reliance Retail also opened the first standalone GAP store in India in Mumbai’s Infiniti Mall, Malad, in Q4. This is in addition to the 50+ shop-in-shops of GAP that it has opened since last year.
