Reliance Retail Q2 revenue drops 3.5% to ₹66,502 cr

Reliance Retail Ltd's revenue from operations fell 3.5% year-on-year to ₹66,502 crore for the quarter ended September impacted by weak fashion and lifestyle demand, continued focus on streamlining of operations and calibrated approach to business-to-business to improve margins, the company says.

Profit after tax rose 1.3% year-on-year to ₹2,836 crore during the second quarter.

India’s largest retailer reported earnings before interest, taxes, depreciation, and amortisation (EBITDA) of ₹5,850 crore, up 0.3% Y-o-Y.

The business opened 464 new stores. Total store count stood at 18,946 with area under operation at 79.4 million sq. ft.

The quarter recorded footfalls of over 297 million, a growth of 14%. The focus on scaling up Digital Commerce and New Commerce continued with these channels contributing to 17% of total revenue. The registered customer base grew to 327 million.

AJIO delivered steady performance as it expanded its product catalogue by over 25% Y-o-Y and added over 1.8 million new customers.

JioMart is scaling up quick commerce pilot by serving customers through own store network.

“Reliance Retail continues to make investments in technology and infrastructure to build a strong foundation for future growth and maintain market leadership. We continue to strengthen our customer proposition with innovative products that span everyday essentials to premium offerings,” says Isha M. Ambani, executive director, Reliance Retail Ventures Limited.

Average order value of the non-grocery categories doubled Y-o-Y led by uptick in consumer electronics.

“By continuously enhancing our assortment and innovating across categories, we are creating a shopping experience that meets the evolving needs of our customers and reinforces our leadership in the retail space,” says Ambani.

The retail segment continues to increase its consumer touchpoints and product offerings across physical and digital channels, says Mukesh Ambani, chairman, RIL. “The unique omni-channel retail model enables the business to service a wide range of requirements of a vast, heterogenous customer base. The retail business continues to partner with renowned domestic as well as global players, expanding its basket of quality product offerings. The focus on strengthening our Retail operations will help us rapidly scale-up this business in the coming quarters and years and sustain our industry-leading growth momentum,” says Ambani.