Reliance Retail Q4 pre-tax profit rises to Rs 3,705 crore; FY22 gross revenue touches nearly Rs 2 lakh crore

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Photo source: PTI file

Net profit for the March quarter fell 4.8 per cent year-on-year to Rs 2,139 crore.

Highlights

  • Reliance Retail Ltd’s pre-tax profit rose 2.43% to Rs 3,705 crore for the quarter ended.
  • RIL’s retail arm surpassed its EBITDA of Rs 12,000 crore in the last financial year.
  • Net profit for the quarter ended March fell 4.8% year-on-year to Rs 2,139 crore.

Reliance Retail Ltd posted a 2.43 per cent increase in pre-tax profit of Rs 3,705 crore for the fourth quarter ended March 2022 on Friday, bringing its total revenue to around Rs 2 lakh crore for the full financial year.

The retail arm of Reliance Industries Limited (RIL) has exceeded its EBITDA of Rs 12,000 crore in the last financial year.

In a statement, RIL said Reliance Retail added 1.5 million new jobs to FY22, bringing the total number of employees to over 3.61 million.

“EBITDA for the quarter was recorded at Rs 3,705 crore, an increase of 2.4 per cent YoY. However, before investment income, EBITDA increased by 16.3 per cent YoY to Rs 3,584 crore, leading to strong performance in the fashion and lifestyle and grocery basket,” RIL said in a statement. Statement

It posted a pre-tax profit of Rs 3,617 crore or EBITDA (interest, tax, depreciation and earnings before termination) in the January-March quarter a year ago.

The statement said, “Despite the spread of the Omicron wave and the challenges that have come out of the festival quarter, Reliance Retail has delivered its best-ever quarterly revenue and even surpassed the festival’s quarterly performance.”

Headwinds caused by the coveted situation in January were offset by strong growth in February and March as the business took advantage of the festive season and early summer season setting.

Net profit for the March quarter fell 4.8 per cent year-on-year to Rs 2,139 crore.

For the fiscal year ended March 2022, Reliance Retail’s pre-tax profit rose 26.47 per cent to Rs 12,381 crore. It has reported EBITDA of Rs 9,789 crore for 2020-21.

Its total revenue in the last financial year was Rs 1,99,704 crore. This is an increase of 26.69 per cent over Rs 1,57,629 crore in the previous year.

The FY22 year growth “was driven by broad-based growth across all cost baskets ৷ that is, 87 percent of stores were open despite Covid restrictions per year, and 81 percent more store attendance was recorded at stores than at pre-COVID ৷ levels,” the statement said.

Reliance Retail’s revenue from operations in the quarter was Rs 50,834 crore, up 23.09 per cent from Rs 41,296 crore in the same period last fiscal.

Total revenue, including sales and services, increased by 23.27 per cent to Rs 58,017 crore in the three months ended March 2022. In the same period a year ago, it was Rs 47,064 crore.

In the March quarter, Reliance Retail continued to invest in adding more stores and expanding its network and infrastructure.

“The business continues to strengthen its store network and its supply chain capabilities. It opened 793 stores and added 3.1 million square feet of warehousing and fulfillment space quarterly,” it says.

As of March 31, 2022, Reliance Retail was operating at 41.6 million square feet, with a total of 15,196 stores.

“I am pleased to announce that our retail business has exceeded the 15,000 store benchmark,” said RIL Chairman and Managing Director Mukesh D Ambani.

During the quarter, Reliance Retai acquired about 950 retail stores from Future Group, led by teenager Beanie. Big Bazaar, Central, FBB and Easy Day stores were included.

On April 23, RIL said its Rs 24,713 crore deal could not be implemented to acquire Future Group assets when secured lenders of companies led by Kishore Biyani voted against it.

In the latest March quarter, Reliance Retail saw its business more than double its daily orders on a year-over-year basis across all digital commerce platforms, supported by a strong product portfolio and attractive offers.

“In addition to new trades, the business continues to partner with new merchants across geographies and consumption baskets. The merchant partner base has increased 3-fold compared to last year,” it says.

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