New Delhi: Reliance Retail on Friday reported a 41.45 per cent increase in pre-tax profit at Rs 3,617 crore for the fourth quarter ended March 31, 2021. The retail arm of Reliance Industries Ltd (RIL) had posted a pre-tax profit or EBITDA (earnings before interest, tax, depreciation and amortisation) of Rs 2,557 crore in the January-March period a year ago.
Revenue from operations stood at Rs 41,296 crore, up 20.04 per cent from Rs 34,402 crore in the corresponding period last fiscal.
“4Q FY21 was a landmark quarter for the business with quarterly Revenue and EBITDA at an all- time high despite lesser than normative operating conditions,” RIL said in a post-earnings statement.
EBITDA growth was “enabled by doubling of consumer Electronics profits, continued benefits from cost management initiatives” and a boost from investment income of Rs 534 crore, it added.
Net profit for the quarter was Rs 2,247 crore, higher by 45 per cent year-on-year, the company said.
Value of sales and service by Reliance Retail in Q4 was also up 23.17 per cent to Rs 47,064 crore. It was Rs 38,211 crore in the corresponding January-March quarter of FY20.
For the fiscal year ended March 2021, Reliance Retail”s EBITDA was marginally up 1.09 per cent to Rs 9,789 crore as compared to Rs 9,683 crore in the previous year.
Revenue from operations slipped 4.92 per cent to Rs 1,39,077 crore from Rs 1,46,272 crore in FY 2019-20.
RIL Chairman and Managing Director Mukesh D Ambani said, “We have registered robust recovery in O2C and retail segment, and resilient growth in Digital Services business.”
“Our consumer businesses have proved to be a digital and physical lifeline for the nation in these challenging times,” he added.
During the quarter, Reliance Retail added 826 new stores, taking the total count of operational physical stores to 12,711 as on March 31, 2021.
“The business opened 826 stores during the quarter, higher than all previous quarters combined, reflecting the acceleration in the pace of new store expansion,” said RIL.
The area of retail operations of Reliance Retail was also up 17.77 per cent to 33.8 million sq feet as compared to 28.7 million sq feet earlier.
Its e-commerce venture JioMart continued to scale up on portfolio, traffic and customer base during the quarter, it added.
Over the sales performance, the company said, “Grocery and Fashion & Lifestyle registered all-time high revenues and the strong growth in Consumer Electronics, was bolstered by higher Jio devices sales.”
Consumer electronics business posted strong double-digit growth, led by broad-based performance across stores, digital commerce and Jio devices.
Productivity devices, appliances, TVs and ACs did particularly well and the performance for the quarter was bolstered by a step up in devices sales, led by the relaunch of Jio Phone.
“The own brands portfolio was further strengthened with the launch of 9 brands. In footwear, own brands which provide high quality, contemporary design and a strong value proposition, now contribute to 60 per cent of business,” it said.
Grocery segment hit “its all-time high revenues with a strong double-digit growth Q-o-Q”, as it continued to serve customers amid the COVID-19 pandemic.
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