Reliance Retail’s cash profit for the quarter was ₹2,873 crore ($364 million), up 105.2% year-on-year, the company said in a press release.
Reliance Retail in India reported gross revenue for the first quarter of fiscal year 2022-23 (FY23), ended June 30, 2022, of ₹58,554 crore ($7.4 billion), up 51.9% year over year (YoY). Its EBITDA for the quarter was ₹3,837 crore ($487m), up 97.8%, while net profit was ₹2,061 crore ($261m), up 114.2%. %.
Approximately 15,866 physical stores were operational and 792 stores opened during the quarter. Total operating area was 45.5 million square feet compared to 34.5 million square feet in the corresponding quarter of the previous year.
Reliance Retail cemented its leadership position in fashion and lifestyle by achieving strong revenue growth of 3x over last year, driven by regional festivities and promotions, driving record average invoice values and healthy conversions. Men’s formal wear, women’s Western wear and footwear saw strong growth as offices, schools reopened and consumers resorted to refreshing their wardrobes.
Ajio continues to attract customers even as store footfall has returned to normative levels. The trust of loyal customers on Ajio continues to grow as they have access to some of the finest and trendiest high quality merchandise with an engaging shopping experience on the platform. This is reflected in the purchase value which is twice as high for customers over a year old compared to new customers who have been on the platform for less than 90 days, the statement added.
In merchant partner activity, the platform added 660 new brands while continuing to strengthen its product offering. It introduced 14 new own brands during the quarter, bringing own brand share to 30%, an increase of 300 basis points over last year. In the luxury/premium brands, activity increased almost 5 times compared to last year, thanks to fully operational shopping centers and in-store events. Activity via Ajio Luxe increased by more than 6 times compared to last year with the presence of nearly 400 brands and more than 38,000 options on the platform.
With Amante, Clovia and Zivame in its portfolio, Reliance now caters to all price segments of the lingerie sector. Lingerie business grew nearly 5x year-on-year as companies expanded their online offerings and offline distribution.
The Reliance Retail business had its first quarter without any operating interruptions since the onset of COVID. Consumer spending rose as families engaged in leisure activities, socializing, festivities and shopping as the COVID situation improved, although sentiments remained cautious amid inflationary concerns.
Footfall, recorded at 175 million for the quarter, was 19% above pre-COVID levels as consumers returned to stores. The increase in footfall and digital visits resulted in more than 220 million transactions in the first quarter of FY23, a growth of more than 60% compared to pre-COVID levels.
Commenting on the results, Mukesh Ambani, Chairman and Managing Director, Reliance Industries Limited, said, “In retail, we continue to focus on improving our consumer touchpoints and building a stronger value proposition for our customers. Our strong supply chain infrastructure and sourcing efficiency help us maintain competitive prices for basic necessities, thereby protecting consumers from inflationary pressures. Customer engagement on our digital services platform remains high. »
Fibre2Fashion (KD) News Desk