Reliance Retail surprises all by more than doubling its net profit in the last three months
- Reliance Retail’s business grew over a fifth and its profit doubled in the first quarter of the current financial year.
- The company reported sales worth ₹38,547 crore in the first quarter despite the second wave of COVID-19.
- The company has also added 123 stores between April to June 2021.
|April-June 2021||Amount||YoY Growth|
The profit was helped by “judicious cost management and buoyed by investment income of ₹551 crore,” the company said in a statement.
On the other hand, the street was expecting a sober quarter. Analysts at Goldman Sachs, a global investment bank, had expected fewer people to visit its stores due to the second wave of the pandemic. And it did play out that way. Footfalls were down 46%, the company revealed.
However, the company also added another 123 stores just in the last three months. The company will commission over 700 new stores as COVID-related restrictions are lifted. Reliance Retail has 12,803 stores, as of 30 June, 2021.
“The focus on scaling up digital commerce and merchant partnerships helped partially alleviate the loss of business due to store closures. These streams contributed a sizeable 20% of retail sales in the quarter,” the company added.
What worked for the company
|Segment||Factors at play|
|Consumer electronics||Lower footfalls in the quarter was partially offset by higher conversions and larger bill values. The online portal clocked its best quarter.|
|Fashion and lifestyle||Monthly active users and orders grew four fold on AJIO. Jewellery sales were up two and a half times year-on-year.|
|Grocery||JioMart offset some of the shortfall in sales in physical stores. Orders were up 25% compared to the preceding quarter.|
|New Businesses||Zivame clocked a growth of over 10%. Online orders on Urban Company grew two and a half times compared to the preceding quarter.|
Reliance Jio adds 42 million subscribers but the average revenue is pretty much the same
Uber made a billion dollar from Zomato’s listing, without spending a single penny
Deepinder Goyal’s stake in Zomato is now worth more than $700 million
Popular on BI
- Deadline for PAN-Aadhaar linkage extended till March 2022
- Here is what the Indian film industry can learn from gig economy firms like Zomato and Urban Company
- Cat lover? Here’s a chance to do your favourite thing for research — watch cat videos
- India should let tele migration bloom before worrying about how to tax writers, creators and consultants, says India’s Chief Economic Advisor K V Subramanian
- GST Council meet: No new tax on food delivery apps Swiggy, Zomato