Reliance Industries will announce its results for the April to June 2023 quarter on July 21 and its retail arm Reliance Retail is likely to witness a topline of Rs 70,421 crore, a jump of 1.6 percent from Rs 69,288 crore in the previous quarter, estimates by Kotak Institutional Equities suggest.

However, on a year-on-year basis, the company’s revenue might be up over 20 percent at this level.

During the first quarter of the fiscal, Reliance Retail is likely to have seen a gradual recovery in consumer sentiment, while its operating income or earnings before interest, taxes, depreciation, and amortisation (EBITDA) will be driven by the increased store footprint and operating leverage, the brokerage believes.

Kotak expects the company’s EBITDA to come in three percent higher on a sequential basis at Rs 5,075 crore. On an annual basis, this would be a 31.9 percent increase.

Meanwhile, compared to the previous quarter when the margin was recorded at 7.1 percent, the brokerage expects the number to go up only marginally to 7.1 percent for the quarter under review.

Among the key things to watch are the performance of acquired brands and new launches, and announcements on expansion and acquisitions, the analyst said.

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At the end of the last quarter i.e. in March 2023, Reliance Retail's FMCG arm Reliance Consumer Products Limited (RCPL) had announced the launch of home and personal care products range, in an expansion to its FMCG portfolio. This product line includes Glimmer beauty soaps, Get Real natural soaps, Puric hygiene soaps, Dozo dishwash bars and liquids, HomeGuard toilet and floor cleaners and Enzo laundry detergent powder, liquid and bars.

During the quarter, RCPL also announced its foray into the western snacks category with the launch of Alan’s Bugles in India.

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Prior to this, Reliance Retail also successfully acquired a 51 percent controlling stake in Lotus Chocolate Company Limited (LOTUS).). By completing this transaction, RCPL now has full control over LOTUS, effective as of May 24, 2023.

Meanwhile, in May, it also came to the fore that Shein, a Chinese fast fashion conglomerate, is planning to return to India through a tie-up with Reliance Retail, which has over 10,000 outlets across the country.

First Published:Jul 20, 2023 2:49 PM IST