Reliance Retail Q1 profit up

Revenues from the retail business of Reliance Industries Limited, including petroleum sales from its fuel stations, have increased 45.8 per cent to Rs 6,666 crore in the first quarter of the financial year compared to Rs 4,572 crore in the same quarter last year. The business delivered profits before tax of Rs 240 crore in the first quarter of FY17 against Rs 198 crore in the corresponding period of the previous year, a jump of 21.2 per cent.

The increase in the earnings' numbers was led by growth in digital, fashion and lifestyle and petroleum products, a company statement said.

Reliance Retail operates 3,383 stores across 679 cities with an area of over 13 million square feet, as of June 30. Last year at this time, Reliance Retail operated 2,747 stores across 210 cities.

Its consumer-facing brand Trends added 16 stores during the year, taking the store count to 287. The company said that "the new store concept launched during the last quarter is being extended to other Reliance Trends stores as well and is receiving highly positive reviews."

Reliance Retail, in its venture with UK-based Marks and Spencer, opened five new stores this quarter.

"During the quarter, Reliance Brands launched BCBG Generation, a brand offering young contemporary collection for women's apparel and accessories," the report said.

Reliance Retail added 138 stores and launched footprint360.com to get a foothold in the e-commerce market.

Its e-commerce venture, ajio.com, was building "an emotional connect with its users". It did not detail the venture's earnings or user growth number.

Reports in the media have brought up RIL in the context of the proposed sale of Rocket Internet-backed Jabong.com, but no confirmation or denial was offered.

Reliance Fresh was one of the retail arm's biggest mover, especially after it sold "nearly 200 tonnes of fruit and over 300 tonnes of vegetables each day" in the quarter.

The company's wholesale arm, too, carried on its expansion spree by opening two more cash-and-carry stores in Dehradun (Uttarakhand) and Sangli (Maharashtra).