Reliance Retail Q3 Results: Revenue Growth Slows Sequentially At 4.16%
Reliance Retail's Q3 Ebitda rose 8.6% to Rs 4,657 crore, which is an all-time high.
Reliance Retail Ventures Ltd.’s third-quarter profits and revenue rose, but the pace of growth slowed sequentially owing to slowdown in discretionary spending and delayed winter impacting the fashion and lifestyle business.
Revenue from operations of India’s biggest retailer, controlled by billionaire Mukesh Ambani, rose 4.16% over the preceding quarter to Rs 60,096 crore in the quarter ended December, according to its parent company Reliance Industries Ltd.'s exchange filing.
Year-on-year, its revenue from operations rose 18.6%.
Reliance Retail Q3 FY23 Highlights (QoQ)
Net profit increased 4.12% to Rs 2,400 crore. The pace of growth slowed compared to Q2 FY23. On a year-on-year basis, it rose 6.2%.
Ebitda rose 8.6% to Rs 4,657 crore—an all-time high.
Margin expanded to 7.7% from 7.4%.
"The operating environment maintained at normative levels as the impact of Covid wanes, but the discretionary spending was impacted post the festival season in November," said Gaurav Jain, head of strategy and business development at Reliance Retail, in a post-earnings call.
Delayed winter in the northern and eastern regions of the country also impacted sales of the company's fashion and lifestyle business, he said. "However, we saw a pick-up in demand in the fag-end of December."
Reliance Retail expanded its physical store network with 789 new store openings with an area of six million sq ft, up 10.45% quarter-on-quarter, taking the total store count at the end of the quarter to 17,225 stores.
During the quarter, which also marks the first normal festive season without any Covid-led disruptions, the company saw a record 210 million footfalls. The number of transactions rose to 267 from 207 a year earlier.
Grocery business grew 65% year-on-year.
Expansion of its own brand Independence is underway.
Consumer electronics business, excluding devices, witnessed 45% revenue growth led by mobile, televisions and appliances.
JioMart Digital grew 55% quarter-on-quarter.
Fashion and lifestyle grew 13% YoY, impacted by delay in winter.
Ajio delivered its highest-ever quarterly revenue, driven by festive and wedding season. It expanded its customer base by 33% year-on-year.
Digital and new commerce grew 38% over the previous year, contributing 18% to total revenue.
Daily orders were up 30% and merchant base scaled up 70% YoY.
Revenue growth at 62% YoY across lingerie brands portfolio.
Jiomart has strengthened its catalogue by 71% QoQ and expanded seller base by 83% QoQ.
Pharma revenue up two times, with digital commerce up 67% and hyperlocal up 4% on a year-on-year basis.
Urban Ladder saw revenue growth of 21% YoY.
"Our performance during the quarter demonstrates the underlying strengths and efficiencies of our business model that enable us to serve our customers with excellence at all times," Isha M Ambani, executive director, Reliance Retail Ventures, said in a statement.
"We remain steadfast in offering the best shopping experience across all our stores and digital platforms to deepen our bond with our customers and vendor partners.”