Reliance Retail Business Sees A Major Uptick

The quarterly numbers of Reliance Industries reveals that there has been a solid robust performance of the retail business.

For the fourth quarter ending March 31, 2021 the quarterly Revenue and EBITDA was at a record high despite lesser than normative operating conditions.

Gross Revenue from the retail business was placed at Rs 47,064 crore, grew 24% Q-o-Q and 23% Y-o-Y and EBITDA at Rs 3,617 crore, was up 17% Q-o-Q and 41% Y-o-Y.

Grocery and Fashion & Lifestyle registered all-time high revenues and the strong growth in Consumer Electronics, was bolstered by higher Jio devices sales.

EBITDA growth was enabled by doubling of Consumer Electronics profits, continued benefits from cost management initiatives and a boost from investment income of ₹ 534 crore.

Net profit for the quarter was Rs 2,247 crore ($ 307 million) higher by 45% Y-o-Y; 23% Q-o-Q Cash Profit for the quarter was Rs 2,773 crore ($ 379 million) higher by 30% Y-o-Y; 12% Q-o-Q

The business opened 826 stores during the quarter, higher than all previous quarters combined, reflecting the acceleration in the pace of new store expansion.

The Digital Commerce business led by JioMart, continued to scale up on portfolio, traffic and customer base, while New Commerce continued to onboard merchant partners across consumption baskets with extended geographical coverage.

Overall, given the operating environment in the quarter, which by and large remained at par with the previous quarter (94% of stores operational, footfalls at 88% of pre-COVID levels), the business has delivered a strong performance that reflects a recovery since the pandemic set in. However, the emergence of the second COVID wave in March has led to fresh curbs and resultant disruptions, adversely impacting footfalls, sentiment and operations.

"The business is well positioned and committed to relentlessly serve its customers in this volatile and uncertain environment and is taking decisive actions to secure its people as a foremost priority in these trying times," the company has said in a release.