Reliance Retail Q1 Results: Profit jumps 19% YoY to Rs 2,448 crore, revenue rises 20%

Reliance Retail on Friday reported 18.8% year-on-year (YoY) jump in its June quarter profit to Rs 2,448 crore while the gross revenue rose 19.5% YoY to Rs 69,948 crore.

The EBITDA margin recorded a on-year growth of 30 bps to 7.9% in Q1.

RIL said revenue growth was led by grocery, consumer electronics (excluding devices) and fashion & lifestyle while margin growth was a result of improving efficiencies.


"Retail business delivered robust growth, with fast-paced store additions and steady growth in footfalls. The contribution of Digital and New Commerce initiatives is scaling up, delivering value to consumers and providing synergistic benefits to merchant partners," said RIL chairman Mukesh Ambani.

During the quarter, Reliance Retail recorded highest ever footfall at 249 million across all formats and added 555
stores. The total store count stood at 18,446. Digital Commerce and New Commerce businesses continued to grow and contributed to 18% of revenue.

The company's depreciation increased 56.9% on account of higher asset base due to addition of stores and improved supply chain infrastructure.

The consumer electronics business, excluding devices, delivered 14% YoY growth while the fashion and lifestyle business delivered revenue growth of 15% YoY driven by pick up in store traffic and average bill value.

"AJIO reported another strong quarter with sustained improvement across operational metrics. The business added 2 million new customers during the period along with several new brand launches across categories," RIL said.

The grocery business, too, delivered another quarter of record performance, up 59% YoY, led by Smart Bazaar formats.

On consumer brands, RIL said the focus is on expanding distribution reach and engagement in general trade channel, delivering 8x YoY revenue growth.

"There was a sharp uptick in performance of the beverages category with sales growing 11x YoY led by Campa Cola gaining traction across the country," it said, adding that JioMart expanded its seller base 4x YoY.

"The sustained growth across consumption baskets has further consolidated our position as a market leader. We continue to innovate and invest in our stores and digital platforms to make shopping more engaging for our customers," said Reliance Retail Ventures Executive Director Isha Ambani.