Reliance Retail posts record gross income of Rs 57,714 cr, pre-tax profit of Rs 3,822 cr in Q3

(Eds: Adds details) New Delhi, Jan 21 (PTI) Reliance Retail said on Friday it delivered a “historic quarter” by posting a record gross revenue of Rs 57,714 crore with a pre-tax profit of Rs 3,822 crore for the three months to December 2021.
This is the first quarter that the retail arm of Reliance Industries Ltd (RIL) has crossed the Rs 50,000 crore revenue mark.
“It was a strong quarter and (we) had the highest quarterly revenue ever and the best earnings performance ever,” said Reliance Retail’s head of strategy and business development, Gaurav Jain, during his post-benefit call.
The company recorded “record” revenue and “achieved a milestone of Rs 50,000 crore in revenue in one quarter”, it added.
Reliance Retail had recorded profit before tax or EBITDA (earnings before interest, tax, depreciation and amortization) of Rs 2,312 crore in the October to December quarter a year ago.
Its net profit for the quarter was Rs 2,259 crore.
Consolidated revenue from operations in the quarter ended December 2021 was Rs 50,654 crore, up 53.41% from Rs 33,018 crore a year ago.
Its gross income, which includes the value of sales and services, soared 52.5% to Rs 57,714 crore from Rs 37,845 crore earlier.
“This is the quarter where all of our omnichannel capabilities really came together to serve our customers everywhere and helped the company deliver the best quarterly performance ever,” added Jain.
This was also helped by a smooth operating condition as restrictions were gradually eased during the quarter and there was a build up of festive and wedding season sales as normalcy began to return.
“We were able to return to store operating parameters and also footfall close to pre-Covid level at 95% and 97% respectively,” he said.
However, towards the end of December, the disturbances started again because of the new Covid strain.
During the October to December quarter, Reliance Retail continued to add new stores and invest in network and infrastructure expansion.
In the third quarter of FY22, Reliance Retail added 837 stores, bringing the total number to 14,412 stores and 2.3 million square feet of warehouse space to bolster its service capabilities.
“Our focus on infrastructure expansion continued during the quarter,” he said, adding that Reliance Retail also added 73 supply chain sites to help across departments and channels.
Its business continued to strengthen its digital capabilities and new businesses.
Commenting on the results, RIL Chairman and Managing Director Mukesh D Ambani said: “Retail business activity normalized with strong growth in major consumer baskets on the back of the festive season and at as shutdowns eased across the country. Our digital services business delivered broad based, sustainable and profitable growth through improved customer engagement and subscriber mix.”
Merchant partnerships and digital commerce orders have reached new heights, with merchant partners growing by 4X per year and digital commerce orders by 2X.
“Reliance Retail has strengthened its capabilities through acquisitions and strategic partnerships and has invested over Rs 7,600 crore in the 9 month period of FY22,” the company said.
The company said it posted “record revenues” across all consumer baskets, driven by the highest ever in-store sales and continued growth momentum in digital and new commerce.
“Consumer electronics and apparel and footwear doubled their activity on strong festive sales while grocery maintained its steady and solid double-digit growth momentum,” he added.
The Fashion and Lifestyle business generated the highest quarterly revenues on record with double the growth compared to the same period last year.
“The grocery business maintained its strong and consistent double-digit growth momentum, driving its record sales through higher footfall and robust billing values,” he said.
JioMart continued to grow rapidly with increased traffic, customers and orders thanks to attractive offers, a wider regional assortment and higher service levels.
Daily orders for its Milkbasket grocery delivery platform have increased 1.5x as companies seek to expand operations into new watersheds.
Its Netmeds pharmaceuticals business also performed strongly with growth across all channels.
“The company intensified its hyperlocal execution through the addition of more stores and operationalized additional fulfillment centers to increase customer reach and improve customer experience,” he said.
“During the quarter, Reliance Retail acquired Jaisuryas, a leading grocery chain in South India, Amante, a leading women’s intimate apparel brand and Kaxlanikethan, a leading women’s saris and ethnic wear brand. “, did he declare.
Additionally, the company has entered into strategic partnerships with investments in Ritu Kumar’s private label Ritika and allied brands and Manish Malhotra’s eponymous brand.
Reliance Retail also invested $200 million in Dunzo, a leader in last-mile delivery and fast-paced commerce, for a 25.8% stake. PTI KRH ABM ABM