Reliance Retail PBDIT expands 19%, revenue grows 17.5%

NEW DELHI: Reliance Retail, the retail division of Mukesh Ambani-led Reliance Industries, reported an 19% jump in profit before depreciation, interest and taxes (PBDIT) in the first quarter of fiscal 2016.

While PBDIT increased to Rs 203 crore from Rs 171 crore a year earlier, the company said its revenue rose 17.5% to Rs 4,698 crore. Like-for-like sales – a key metric in the retail industry comparing sales at the same outlets for the two periods – expanded 13%, the company said in its earnings announcement.

Contribution of private label sales to overall sales in the quarter ended on June 30 increased to 10% from 8% a year earlier. Reliance Market now serves more than 1.7 million registered members across 35 cities.

During the first quarter, Reliance Trend, which comprises 20 brands that contribute over 70% of overall sale, has partnered with a globally renowned fashion house to augment its in-house product design capabilities, the company said. The association would help in bringing global fashion trends to the Indian market, thereby bridging the gaps in the merchandise offerings, it added.

Reliance Brands announced an exclusive partnership with Japanese retailer Muji, which sells a wide verity of household and consumer goods, and 130-year-old Dutch lingerie brand Hunkemöller in the past quarter.

The Digital Express Mini division scaled up operations during the quarter and surpassed the 1,000-store mark. The company opened an outlet selling international women's brand BCBG MAX Azria in Delhi.

As of June 30, Reliance Retail operated 2,747 stores across 210 cities in India.