Reliance Retail Q2 Operating Revenue Down 3.5% To Rs 66,502 Crore, Profit Up 1.28%

Reliance Retail Venture Ltd (RRVL), the retail arm of billionaire Mukesh Ambani-led Reliance Industries, reported a 3.53 per cent decline in operating revenue to Rs 66,502 crore for the quarter ended in September 2024, impacted by a weak demand and streamlining of operations.

Profit after tax was marginally up 1.28 per cent at Rs 2,836 crore for the second quarter of the 2024-25 financial year.

The company had reported a revenue of Rs 68,937 crore and and profit after tax of Rs 2,800 crore for the July-September quarter a year ago, according to the regulatory filing of Reliance Industries Ltd (RIL).

"Growth impacted by weak Fashion and Lifestyle (F&L) demand, continued focus on streamlining of operations and calibrated approach to B2B business to improve margins," according to an earning statement from Reliance Industries.

Reliance Retail's gross revenue, which includes other income, was also down 1.09 per cent at Rs 76,302 crore in the September quarter of FY25. It was at Rs 75,615 crore in the year-ago quarter.

However, the pre-tax profit (EBITDA) of the country's leading retailer was up 1.03 per cent in the June quarter of FY25 to Rs 5,675 crore.

Reliance Retail continued its expansion and opened 464 new stores, taking the total store count to 18,946 with area under operation at 79.4 million sq. ft by the end of the September quarter.

Moreover, Digital Commerce and New Commerce contributed to 17 per cent of the total revenue of Reliance Retail as it continued to focus on scaling these new-age channels.

Commenting on the results, RIL Chairman and Managing Director Mukesh D Ambani said, The retail segment continues to increase its consumer touchpoints and product offerings across physical and digital channels.

The unique omnichannel retail model enables the business to service a wide range of requirements of a vast, heterogeneous customer base. The retail business continues to partner with renowned domestic as well as global players, expanding its basket of quality product offerings."

He further said that the focus on strengthening retail operations will help the company rapidly scale up this business in the coming quarters and years and sustain industry-leading growth momentum.

Moreover, RRVL also recorded a 14.23 per cent increase in the number of footfalls at its stores at 297 million in the September quarter.

Reliance Retail's registered consumer base also went up 16.37 per cent to 327 million in the September quarter, making it "one of the most preferred retailers in the country," it said.

In the June quarter, Reliance Retail's total number of Transactions also went up 8.88 per cent to 334 million.

While sharing segmentwise details, Reliance Retail said in the Consumer Electronics business, its digital stores maintained growth momentum in average bill value. It had a revenue uptick of 60 per cent and the network of Digital stores crossed 650 stores, it added.

Its after-sales service business resQ also delivered growth with service volume up 28 per cent Y-o-Y. The on-demand services are now operational in 150 cities, it added.

In the Fashion and Lifestyle business, Reliance Retail's new formats continue to gain positive traction with customers.

"Youth-focused fashion retail format, Yousta, has crossed a milestone of 50 stores within its first year of launch," it said.

AJIO, its digital commerce fashion and lifestyle brand, also delivered "steady performance as it expanded its product catalogue by over 25 per cent" compared to last year and added over 1.8 million customers, it added.

However, its grocery business delivered "another quarter of steady growth", which was led by its Smart Bazaar and Smart stores. The business also registered the highest-ever single-day sales on Independence Day.

"Grocery New Commerce business continues its growth trajectory as Metro format strengthened its engagement with Trader and HoReCa segments. The business executed multiple campaigns like Freedom Sales, Mehangai Se Azadi, Metro Aayein Tyohaar Manayein to drive growth," it said.

Reliance Retail’s e-commerce arm JioMart is scaling up "quick commerce" pilot by serving customers through its store network.

"The non-grocery categories continue to do well with AOV (average order value) growing 2X Y-o-Y led by an uptick in consumer electronics," it said adding that JioMart's seller base is growing 46 per cent Y-o-Y.

The consumer brands of Reliance Retail, which has ambitions to become a sizeable FMCG player, continued to deepen its presence in general trade channels which delivered over 250 per cent Y-o-Y revenue growth. It launched many new products under its bouquet of brands as Maliban, Ravalgaon, Campa and Independence, it added.

Executive Director Isha M Ambani said Reliance Retail continues to make investments in technology and infrastructure to build a strong foundation for future growth and maintain market leadership.

"We continue to strengthen our customer proposition with innovative products that span everyday essentials to premium offerings. By continuously enhancing our assortment and innovating across categories, we are creating a shopping experience that meets the evolving needs of our customers and reinforces our leadership in the retail space,” she said.