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 1,923 crore in the January-March quarter a year ago.
Revenue from the organised retail segment of RIL during the quarter was up 4.22 per cent at Rs 38,211 crore, as against Rs 36,663 crore in the corresponding period last fiscal.
Reliance Retail operates a network of 11,784 stores covering 28.7 million square feet. During the quarter, it added 496 stores.
"Retail business benefitted from new store additions, strong footfalls and high LFL (like for like) growth. Digital services segment witnessed robust growth in subscriber base and strong customer engagement through the year," RIL said in a post-earnings statement.
During the nationwide lockdown, its "non-grocery retail business was impacted", the company said.
To help the customers, it had kept all grocery stores open for extended hours to provide essential products.
According to the company, its grocery stores have recorded the highest ever sales in March, surpassing even the festive season sales.
"During the month of March, grocery stores recorded their highest ever sales surpassing the Diwali month performance despite logistical challenges. In a response to the lockdown situation, all grocery stores were kept open for extended hours to provide access and availability of essential products to customers in these trying times," it added.
Through its Jio Mart Pilot initiative, an e-commerce venture, Reliance Retail supported its partner kirana stores by offering uninterrupted services and supplies during the lockdown period, it said.
"Daily orders grew by 4x during the lockdown period as kirana partners focused on serving their neighborhoods during the time of crises," it said.
For the fiscal year 2019-20, Reliance Retail's EBITDA was up 55.68 per cent to Rs 9,654 crore, from Rs 6,201 crore in the previous year. Revenue in the previous fiscal stood at Rs 1,62,936 crore, up 24.79 per cent from Rs 1,30,566 crore in FY 2018-19.
"Overall, the year has been a growth year with March being a tepid month due to the COVID-19 lockdown impact," said RIL.
During FY20, Reliance Retail has overall added over 1,500 stores and has been ranked as the fastest growing retail company. Moreover, it has recorded footfalls at 640 million at its stores, up 17 per cent y-o-y, it said.
"Reliance Retail expanded its store footprint, both geographically and across the consumption baskets to tap the market opportunity in the smaller towns. It added 496 stores in the quarter or 1,553 stores during the year taking the overall count of 11,784 stores covering an area of 28.7 million square feet," it said.
Its consumer electronics chain Reliance Digital continues to maintain its leadership position, it added.
"Fashion and Lifestyle category delivered a credible performance despite shutdown. Grocery category witnessed strong growth led by SMART and Reliance Fresh, driven by store expansion and like for like growth in existing stores," it said. KRH ABMABM