Reliance Retail Ventures, the retail arm of diversified conglomerate Reliance Industries Ltd (RIL), on Friday, April 21, reported a 12.9 percent year-on-year (YoY) jump in net profit at Rs 2,415 crore for the fourth quarter that ended March 31, 2023. During this quarter, the company saw its highest-ever footfalls.

In the corresponding quarter last year, the company posted a net profit of Rs 2,139 crore. In the March quarter, total revenue stood at Rs 69,267 crore, up 19 percent, led by growth in grocery, consumer electronics, and fashion and lifestyle.

The profit delivery was robust with EBITDA surpassing the festive quarter at Rs 4,914 crore which was up by 33 percent year-on-year. EBITDA before investment income was at rs 4,769 crore, a growth of 33 percent year-on-year.

The depreciation increased on account of a higher asset base due to the addition of new stores and supply chain infrastructure and higher finance costs on account of an increase in borrowings for business expansion, RIL said.

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In the fourth quarter, the business maintained its store opening trajectory with 966 new store openings with an area of 6 million square feet. The quarter recorded the highest-ever footfalls at 219 million across formats.

The business continued to invest in strengthening its supply chain capabilities by expanding over 1.7 million square feet of warehouse space. Digital commerce and new commerce businesses continued to grow and contributed to 17 percent of revenue.

FY23

The net profit for the year was Rs 9,181 crore, higher by 30 percent and the cash profit was Rs 13,963 crore higher by 42 percent. For the full year, the business recorded a Gross Revenue of Rs 260,364 crore, a growth of 30 percent over last year driven by broad-based growth across consumption baskets.

The business continues its strong track record of profit growth registering an EBITDA of Rs 17,928 crore, higher by 45 percent year-on-year. EBITDA before investment income was at Rs 17,609 crore, higher by 61 percent year-on-year.

The EBITDA margin on net sales was at 7.6 percent, up +140 bps year-on-year driven by favourable mix, sourcing benefits and operating efficiencies. Depreciation increased on account of a higher asset base due to the addition of new stores and supply chain infrastructure, RIL said.

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This year the business opened over 3,300 stores, taking the total count to 18,040 stores with a total area of 65.6 million square feet. The year reflects an unprecedented growth of retail footprint as the business has added 25 million square feet of store area representing more than 50 percent growth of retail space year-on-year.

The registered customer base grew to 249 million, a growth of 29 percent year-on-year. The Total transactions crossed a milestone of 1 billion transactions, up 42 percent year-on-year. Stores recorded footfalls of over 780 million, which were up 50 percent year-on-year.

Investments in boosting supply chain infrastructure remained a priority to deepen warehousing and fulfillment capabilities with the addition of 12.6 million sq. ft. of warehouse space during the year.

JioMart

JioMart delivered its best quarter with robust growth across categories. The platform augmented its catalogue by 34 percent quarter-on-quarter across categories to widen its offering.

Trends, Hamleys & Urban Ladder are now live on the platform and JioMart is seeing a sustained uptick in non-grocery category contribution. JioMart further strengthened its seller base by 56 percent on a quarter-on-quarter basis.

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Isha M Ambani, executive director of Reliance Retail Ventures said the company continues on the path of registering industry-leading growth year after year at a scale unmatched in India.

"At Reliance Retail we remain committed to delivering exceptional value to our customers while driving sustainable growth for our business and various stakeholders in the ecosystem.

Our focus on customer-centricity backed by investments in technology, innovation and new business segments have helped us create operational excellence and steer the transformation of India’s retail sector," Ambani said.

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First Published:Apr 21, 2023 7:46 PM IST