Sales up 10% and profit up 12% at Reliance Retail

The parent company of Reliance Retail, Reliance Retail Ventures (RRVL), announced on Monday a consolidated net profit of Rs 2,698 crore for Q4FY24, an increase of 11.7% over the same time last year. Although Q3 was a Christmas quarter and consequently excellent from a topline and bottomline viewpoint, sequentially, net profit was down 14.8%, according to experts following the firm.

Dinesh Taluja, chief financial officer of Reliance Retail, said on a post-results earnings call that consumer electronics, groceries, and fashion and leisure drove Q4 success. Taluja said that the yearly sales of three fashion and leisure firms had surpassed Rs 2,000 crore. In Q4, he said, JioMart’s seller base increased 94% year over year. And in Q4, consumer brands—led by Campa and Independence brands—grew three times faster than they did the previous year.

According to Taluja, RRVL’s FY24 annual net profit surpassed Rs 10,000 crore, while its total sales surpassed Rs 3 trillion, signifying an increase of 17.8% over the previous year. Operations brought in $2.73 trillion in revenue in FY24, up from $2.30 trillion in FY23. Operational EBITDA was Rs 22,196 crore, up 26.04% from the year before.
The operating revenue for the March quarter was Rs 67,610 crore, which represents a 9.8% year-over-year (y-o-y) increase over the Rs 61,559 crore recorded in the corresponding period of the previous year. Comparatively speaking, it decreased 9.1% from the Rs 74,373 crore recorded in Q3.

In Q4, operating profits before interest, tax, depreciation, and amortization (Ebitda) increased by 18.1% year over year to Rs 5,632 crore. Ebitda decreased 7.1% sequentially from Rs 6,061 crore in Q3. EBITDA margins were up 58 basis points from the same time last year (7.75% in Q4FY23) and up 18 basis points sequentially (Q3 EBITDA margins were at 8.15%) in Q4.

In the March quarter, there were 272 million visitors across all mediums. 562 new shops were established by the corporation. The company expanded its retail presence across all consumption baskets on an annual basis, adding 1,840 shops with a gross area expansion of 15.6 million square feet, bringing the total number of stores to 18,836 with a total area of 79.1 million square feet.

At the end of FY24, there were 304 million registered customers, up 22.1% from the previous year, and 1,260 million total transactions, up 22% year over year. In FY24, Reliance Retail also raised a total of Rs 17,814 crore for equity funds, with RIL contributing Rs 2,500 crore during the March quarter.