Reliance Retail posts all-time high gross revenue of Rs 57,714 cr, pre-tax profit of Rs 3,822 cr in Q3

The company said it has recorded all-time high revenues across all consumption baskets, driven by the highest-ever store sales and sustained growth momentum in digital and new commerce.Consumer Electronics and Apparel Footwear doubled their business on the back of strong festive sales while Grocery sustained its consistent and strong double-digit growth momentum, it added.


PTI | New Delhi | Updated: 21-01-2022 22:53 IST | Created: 21-01-2022 22:53 IST
Reliance Retail posts all-time high gross revenue of Rs 57,714 cr, pre-tax profit of Rs 3,822 cr in Q3
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Reliance Retail on Friday said it has delivered a ''landmark quarter'' by posting an all-time high gross revenue Rs 57,714 crore with pre-tax profit of Rs 3,822 crore for the three months to December 2021.

This is the first quarter when the retail arm of Reliance Industries Ltd (RIL) has crossed the Rs 50,000 crore revenue mark.

''It has been a solid quarter and (we) reported highest ever quarterly revenues and also best-ever profit performances,'' Reliance Retail's Head - Strategy and Business Development Gaurav Jain said at its post-earning concall.

The company has posted a ''record high'' revenue and ''delivered a milestone of Rs 50,000 crore of revenues in a quarter,'' he added.

Reliance Retail had clocked a pre-tax profit or EBITDA (earnings before interest, tax, depreciation and amortisation) of Rs 2,312 crore in the October-December quarter a year ago.

Its net profit for the quarter was at Rs 2,259 crore.

Consolidated revenue from operations during the quarter ended December 2021 was at Rs 50,654 crore, up 53.41 per cent from Rs 33,018 crore in the year-ago period.

Its gross revenue, which includes the value of sales and services, climbed 52.5 per cent to Rs 57,714 crore as against Rs 37,845 crore earlier.

''This the quarter when our all omni channels capabilities have really come together and to serve our customers far and wide and supported the business to deliver best-ever quarterly performances,'' Jain added.

This was also helped by a smooth operating condition as restrictions were eased during the quarter progressively and there was a buildup of festive sales and marriage season as normalcy started to return.

''We were able to reach back to the store operating metrics and also footfall to near pre-Covid level at 95 per cent and 97 per cent respectively,'' he said.

However, towards the fag end of December, disruptions again started because of the new Covid strain.

During the October-December quarter, Reliance Retail continued to add more stores and invest in network and infrastructure expansion.

In Q3 FY22, Reliance Retail added 837 stores, taking the total count to 14,412 stores and 2.3 million sq ft of warehousing space to bolster its service capabilities.

''Our focus on infrastructure expansion has continued during the quarter,'' he said, adding Reliance Retail has also added 73 supply chain locations to help all services and channels.

Its business continued to strengthen its digital and new commerce capabilities.

Commenting on the results, RIL Chairman and Managing Director Mukesh D Ambani said: ''Retail business activity has normalised with strong growth in key consumption baskets on the back of festive season and as lockdowns eased across the country. Our digital services business has delivered broad-based, sustainable, and profitable growth through improved customer engagement and subscriber mix.'' Merchant partnerships and digital commerce orders scaled new highs with merchant partners growing 4X Y- o-Y and digital commerce orders growing 2X.

''Reliance Retail has built capabilities through acquisitions and strategic partnerships and has invested over Rs 7,600 crore during the 9 months period in FY 22,'' the company said. The company said it has recorded ''all-time high revenues'' across all consumption baskets, driven by the highest-ever store sales and sustained growth momentum in digital and new commerce.

''Consumer Electronics and Apparel & Footwear doubled their business on the back of strong festive sales while Grocery sustained its consistent and strong double-digit growth momentum,'' it added. Fashion and Lifestyle business delivered the highest-ever quarterly revenues with 2X growth over same period last year.

''Grocery business sustained its strong and consistent double-digit growth momentum, delivering its all-time high revenue driven by higher footfalls and robust bill values,'' it said.

JioMart continued to scale up rapidly with higher traffic, customers and orders driven by attractive offers, wider regional assortment and superior service levels.

Its grocery delivery platform Milkbasket's daily orders grew by 1.5X as businesses look to expand operations to new catchments.

Its pharma business Netmeds also delivered strong performance with growth across all channels.

''The business scaled up its hyperlocal fulfilment through the addition of more stores and operationalized additional Fulfillment centres to increase customer reach and improve customer experience,'' it said.

''During the quarter, Reliance Retail acquired Jaisuryas, a leading grocery chain in Southern India, Amante, leading women’s intimate wear brand and Kaxlanikethan, leading women’s saree and ethnic wear brand,'' it said.

Further, the business entered into strategic partnerships with investments in Ritu Kumar's private label Ritika and allied brands and Manish Malhotra’s eponymous brand.

Reliance Retail also invested USD 200 million in leading last-mile delivery and quick commerce player Dunzo for a 25.8 per cent stake.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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