Reliance Industries Ltd reported its results for the quarter ended September 2024 on Monday, October 14. Reliance Retail reported a fall in revenue at ₹76,325 crore, down from ₹77,163 crore in the year-ago period. A CNBC-TV18 poll had estimated an 8% increase in revenue at ₹83,250 crore. The retail business of the Reliance group had reported a revenue of ₹77,630 crore in the previous quarter.
The earnings before interest, taxes, depreciation, and amortisation (EBITDA) came in at ₹5,861 crore, a 0.5% jump from the year-ago period. The EBITDA was in-line with the estimated ₹5,860 crore. In the previous quarter, the EBITDA came at ₹5,672 crore. EBITDA margin came at 7.7% for the September quarter.
Commenting on the results, Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited said: “The retail business continues to partner with renowned domestic as well as global players, expanding its basket of quality product offerings. The focus on strengthening our Retail operations will help us rapidly scale-up this business in the coming quarters and years and sustain our industry-leading growth momentum.”
The conglomerate’s retail arm recorded footfalls of 297 million, up 14.2% from the year-ago period. The company stated that the digital and new commerce channels contributed 17% of the total revenue. RRVL’s registered customer base grew to 327 million by the end of September 2024.
Reliance Retail expanded to 18,946 outlets spread across 79.4 million sq ft across the country by the end of the three months. The total transactions went up 8.9% as compared to the corresponding period a year ago to 343 million. Reliance’s network of consumer electronics stores crossed 650 outlets. The Digital India campaign boosted revenues by 60% year-on-year offering a wide product selection and attractive consumer deals.
Fashion and lifestyle categories witnessed an uptick during the quarter. The company leveraged regional festivals like Onam, Ganesh Chaturthi, and Pujo to enhance customer engagement and boost transactions. Reliance launched several new retail formats, including the youth-focused fashion brand Yousta, which crossed 50 stores in its first year of operation.
The e-commerce platform AJIO expanded its product catalogue by 25% and gained over 1.8 million new customers, including collaborations with brands like H&M, Timberland, and ASOS.
Reliance’s premium retail segment also witnessed growth, with Ajio Luxe increasing its product range by 28%. Reliance launched India’s first Armani Café, while Hamleys continued its international expansion. The jewellery business performed well aided by higher average bill values and the launch of nine new collections.
The grocery segment delivered another quarter of steady growth, with Smart Bazaar and Smart stores aiding business. Promotional events like the Full Paisa Vasool Sale and Independence Day sales drove significant traffic, according to the company. The confectioneries and snacks segment grew by 30% year-on-year, fruits by 26%, and apparel by 49%. The Metro format, part of the company’s New Commerce strategy, strengthened its engagement with traders and HoReCa (Hotels, Restaurants, and Cafés) segments.
JioMart’s non-grocery categories posted growth, with the average order value doubling from the preceding year. The seller base, on the other hand, expanded by 46%, and the product catalogue grew by 13%. Reliance’s consumer brands division reported a 250% year-on-year increase in revenue from general trade. New products and markets across various categories contributed to this growth.
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