While retail revenues have more than doubled for the fourth consecutive quarter, PBDIT has more than tripled for the third consecutive quarter
The retail business of Reliance Industries Ltd (RIL) reported 121% increase in revenues year on year (yoy) for the second quarter of fiscal 2019 (Q2 FY'19) with overall revenues growing to Rs 32,436 crore.
Additionally, profit before depreciation, interest and tax (PBDIT) for July to September 2018 quarter grew 213.51% on year at Rs 1,392 crore.
While revenues have more than doubled for the fourth consecutive quarter, profit before depreciation, interest and tax (PBDIT) has more than tripled for the third consecutive quarter. The increase in turnover, according to Reliance Retail, was due to continued growth momentum and strong profitability.
Mukesh D Ambani, chairman and managing director, RIL, said that the company has delivered robust operating and financial results for the quarter despite macro headwinds, with strong growth in earnings on a year-on-year basis.
"Our commitment to create consumer value is gathering momentum with the robust scale-up of India-centric consumer-facing businesses. The financial performance of retail reflects the benefits of scale, technology and operational efficiencies. The retail business earnings before interest, tax, depreciation and amortisation (ebitda) has grown three-fold on a y-o-y basis," said Ambani, adding that accelerated store expansion, strong value proposition and focus on customer experience across all consumption baskets has resulted in this robust growth.
The company's grocery retailing vertical's growth was backed by new store expansion and increased volume in existing stores. Fifteen new Reliance Smart stores and five new Reliance Fresh stores were opened during the quarter. Together, Fresh and Smart now operate 523 stores across 100 cities. Reliance Trends crossed the milestone of 500 stores during the quarter and now operates 509 Trends and Trends's extension stores. Implementation of various omnichannel initiatives across network of Trends stores continues as per the plan.
"Over 100 stores were integrated for the fulfilment of orders received through the online channel. Trends has operationalised kiosks across 465 stores to serve customers with sizes/options that are not readily available at stores. This would capitalise on the opportunity to bring offline customers to its online channel and also drive superior customer satisfaction," the company said in a statement.
The consumer electronics and appliances retail business under Reliance Digital opened 17 new stores during the July to September 2018 quarter. Reliance Retail also re-commissioned 10 Petro Retail outlets during the quarter and now operates 512 own retail outlets as of September 30, 2018.
RIL's retail business continues to be the largest and fastest growing retailer in India with a reach across 5,800 plus towns and cities. The retail vertical added 138 stores and 535 Jio Points during the second quarter of fiscal 2018-19 translating into over 55 store openings in a week. The retail business operates 9,146 stores with an area of over 19.50 million square feet as of September 30, 2018.
MONEY MOUNTAIN
- Rs 1,56,291 crore – RIL revenues in Q2, a jump of 54.5%
- Rs 2,58,701 crore – Outstanding debt as on September 30
- Rs 5,230 crore – RIL to buy stakes in Den Networks and Hathway Cable
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The company's grocery retailing vertical's growth was backed by new store expansion and increased volume in existing stores. Fifteen new Reliance Smart stores and five new Reliance Fresh stores were opened during the quarter. Together, Fresh and Smart now operate 523 stores across 100 cities. Reliance Trends crossed the milestone of 500 stores during the quarter and now operates 509 Trends and Trends's extension stores. Implementation of various omnichannel initiatives across network of Trends stores continues as per the plan.
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