Reliance Retail Q2 Results | Revenue up 18%, total footfall crosses 260 million

Reliance Industries Ltd reported its results for the quarter ended September 2023 on Friday, October 27. Reliance Retail Ventures Ltd (RRVL), a subsidiary of Reliance Industries, reported steady numbers for the period under review.

Reliance Retail reported an 18.8% rise in revenue at ₹77,148 crore, up from ₹64,920 crore in the year-ago period. Kotak Institutional Equities had estimated a 3.1% increase in revenue at ₹72,134 crore. The retail business of the Reliance group had reported a revenue of ₹69,948 crore in the previous quarter. 

The earnings before interest, taxes, depreciation, and amortisation (EBITDA) came in at ₹5,820 crore, a 32.2% jump from the year-ago period. The EBITDA was above the estimated ₹5,409 crore. In the previous quarter, the EBITDA came at ₹5,139 crore. EBITDA margin came at 8.4% for the July-September quarter, above estimate.

The net profit for the quarter came at ₹2,790 crore, up from ₹2,448 crore in the previous quarter, and  ₹2,305 crore in the year-ago period.

Talking about the quarterly performance, Chairman and MD Mukesh Ambani said that Reliance  Retail has continued to rapidly expand its offline as well as online presence.

RRVL Executive Director Isha M Ambani said, "The performance is a testament to our customer-centric approach that defines Reliance Retail and we look forward to serving our customers this festive season with renewed optimism and enthusiasm."

According to the release by Reliance Industries, grocery, fashion and lifestyle businesses maintained a strong growth momentum during the quarter.

The consumer electronics segment too witnessed a steady performance despite the festive season falling in the next quarter. The business witnessed an 11% year-on-year growth. The merchant count grew 2.6 times as compared to the previous year. New commerce expanded its merchant base by 44%.

For the quarter under review, Reliance Retail opened 471 new stores, taking the total count at the end of September 2023 to 18,650. The quarter reported footfalls of over 260 million across formats, up 40.5% from the previous year.

The digital and new commerce businesses contributed 19% of the revenue.

The highlight of the quarter was the ₹8.27 lakh crore valuation of the company by Qatar Investment Authority. Reliance Retail Ventures announced in August that Qatar Investment Authority will be investing a sum of ₹8,278 crore in the company for a 0.99% stake, through its wholly-owned subsidiary.

The fashion and lifestyle business of Reliance Retail reported a 32% year-on-year growth. In August, the company announced the launch of its youth-focused fashion retail format, Yousta, with the opening of its first store in Hyderabad’s Sarath City Mall. The company said the format will be scaled up in the coming period.

During the quarter, RRVL also announced a partnership with Bollywood actress Alia Bhatt's eco-conscious clothing brand Ed-a-Mamma. Reliance Retail acquired a 51% majority stake in the children's fashion and maternity wear brand.

The grocery business delivered a 33% growth year-on-year led by Smart and Smart Bazaar formats. According to the company, the business achieved its highest single-day sale on August 15. The consumer brands business delivered four times year-on-year revenue growth.

Earlier in the day, Reliance Industries formalised the succession plan announced at its previous Annual General Meeting this year. Shareholders approved the appointment of new generation leaders, Isha, Akash and Anant Ambani on the company's board as Non-Executive Directors.