Reliance Retail Q3 profit up 2.7 pc to Rs 3,551 cr, gross revenue rises 8.1 pc to Rs 97,605 cr

New Delhi, Jan 16 (PTI) Reliance Retail Venture Ltd (RRVL), the retail arm of billionaire Mukesh Ambani-led Reliance Industries, on Friday reported a 2.7 per cent rise in profit after tax to Rs 3,551 crore in the December quarter, while its gross revenue growth slowed to 8.1 per cent to Rs 97,605 crore.

Reliance Retail's revenue from operations was at Rs 86,951 crore in the December quarter, up 9.2 per cent from Rs 79,595 crore in the year-ago period.

The company had reported a gross income of Rs 90,333 crore and profit after tax of Rs 3,458 crore for the October-December period a year ago, Reliance Industries Ltd (RIL) said in a regulatory filing.

For the quarter, Reliance Retail's pre-tax profit (reported EBITDA) was at Rs 6,915 crore, which was marginally up 1.3 per cent year-on-year.

The country's largest retailer continued to focus on expansion of new store opening, adding 431 new stores in the December quarter.

Its total store count reached 19,979 with area under operation at 78.1 million sq ft.

Moreover, its registered customer base grew to 378 million, making Reliance Retail one of the most preferred retailers in the country, as per the earnings statement.

In addition, the number of transactions during the quarter also crossed the 500-million milestone. It has reported a 47 per cent growth in the number of transactions to 524 million on a year-on-year basis.

Moreover, during the quarter, it completed the demerger of its FMCG business Reliance Consumer Products Ltd (RCPL), making it a direct subsidiary of RIL.

Commenting on the results, RIL Chairman and Managing Director Mukesh Ambani said, "Our retail business also had an eventful quarter, strengthening its portfolio with the onboarding of fresh new brands and product ranges." "The demerger of consumer products business came into effect this quarter. With a broad and diverse product basket ranging from classic Indian brands to new age labels, the consumer products vertical is progressing on its accelerated growth trajectory with a focused organizational structure," he said.

During the quarter, its grocery business delivered "consistent performance" led by uptick in festive period.

Besides Metro, its cash & carry business, which was acquired in 2023, continued its steady performance, driven by increase in customer footfalls and an expansion of wallet share.

Besides, it also witnessed a "steady performance" in the fashion and lifestyle business, which was also supported by festive demand and seasonal assortment execution. However, demand was partially impacted by festive demand being spread between the second and third quarters.

Its e-commerce platform in the AJIO segment "delivered consistent growth throughout the period, driven by promotions and festive buying which resulted in an average basket value increase of 21 per cent Y-o-Y".

Besides, Shein booking revenue continued to scale, driven by strong user traction with app installs exceeding 6.5 million and a twofold expansion of the product portfolio to over 50,000 options.

Shein app, which sells fast fashion online, also continued to scale, driven by strong user traction with app installations exceeding 6.5 million and a twofold expansion of the product portfolio to over 50,000 options.

The consumer electronics segment Reliance Digital stores delivered strong performance during the festive quarter, driven by year-end campaigns and GST-led price resets for air-conditioners and televisions.

"Performance across key categories saw double-digit Y-o-Y growth, with laptops increasing 46 per cent, mobiles by 38 per cent, TVs by 25 per cent, and appliances by 19 per cent," it said.

Commenting on the results, RRVL Executive Director Isha M Ambani said, "By prioritising trend-focused assortments and seamless omni-channel experiences, we continue to foster strong customer engagement and loyalty. As we navigate a shifting consumer landscape, we remain steadfast in our vision to redefine Indian retail through innovation and excellence." PTI KRH TRB