Reliance Retail Q1 results: Net profit rises 18.8% to Rs 2,448 crore

Firm's finance cost up 130% due to business expansion

Reliance Retail on Friday reported an 18.8 per cent year-on-year (YoY) rise in net profit at Rs 2,448 crore in the June quarter of 2023-24 (Q1FY24).

Its profit before interest, depreciation, and tax (PBDIT) increased 25.6 per cent YoY to Rs 4,896 crore. The revenue from operations of the country’s largest retailer increased 20.5 per cent YoY in Q1 to Rs 62,159 crore.

During the quarter, its depreciation went up on account of a higher asset base due to the addition of stores and supply-chain infrastructure.

Its finance cost was up 130 per cent to Rs 628 crore due to an increase in borrowing for business expansion, the company said in its release.

Its gross revenue from operations in the quarter stood at Rs 69,948 crore, up 19.5 per cent due to growth in groceries, consumer electronics (excluding devices), and the fashion and lifestyle businesses.

Mukesh Ambani, chairman and managing director, Reliance Industries, said in the release on its retail business: “Retail business delivered robust growth, with fast-paced store additions and steady growth in footfalls. The contribution of Digital and New Commerce initiatives is scaling up, delivering value to consumers and providing synergistic benefits to merchant partners.”

Reliance Retail added 555 stores in the quarter and witnessed its highest ever footfalls at 249 million across formats. 

Its digital commerce and new commerce businesses continued to grow and their contribution to revenue stood at 18 per cent in the quarter. Reliance Retail also completed the Metro Cash and Carry acquisition.

“I am delighted to share that our financial performance in the quarter has been resilient and aligned with our business goals. Sustained growth across consumption baskets has further consolidated our position as a market leader. We continue to innovate and invest in our stores and digital platforms to make shopping more engaging for our customers,” Isha M Ambani, executive director, Reliance Retail Ventures, said in the release.

AJIO, Reliance Retail’s ecommerce initiative, reported another strong quarter with sustained improvement across operational metrics and added 2 million customers during the period, the company said.