India’s leading retailer, Reliance Retail, has achieved good growth in the third quarter of current fiscal.
Its apparel and footwear business doubled on the back of strong festive sales. The company recorded all-time high revenues across all consumption baskets driven by the highest-ever store sales and sustained growth momentum in digital and new commerce segments.
In a statement, the company said that its net profit jumped by 23.4 per cent year-on-year (Y-o-Y) to Rs. 2,259 crore in the December quarter of financial year 2021-22 (Q3FY22) with cash profit higher by 32 per cent at Rs. 3,277 crore.
Its revenues increased 53.4 per cent Y-o-Y to Rs. 50,654 crore in Q3 as gross revenue from all the consumption baskets, excluding petroleum and connectivity, grew by a whopping 90 per cent over the previous year.
In the fashion and lifestyle business, it delivered its highest-ever quarterly revenues with twofold growth over the year-ago period aided amongst other things by growth in average bill values that resulted in robust store performance.
AJIO, its online fashion retail brand, also recorded new highs with threefold growth in revenue and it also grew its catalogue by 2 times Y-o-Y as it added national and regional brands, and strengthened its own brand portfolio in the value segment.
Mukesh Ambani, CMD, commenting on the Q3 results, said “Retail business activity has normalised with strong growth in key consumption baskets on the back of festive season and as lockdowns eased across the country.”
“Extended festive offers during Diwali, Black Friday and Christmas gained significant traction with customers resulting in higher conversions and average bill values,” the release said.
Gaurav Jain, Head, Strategy and Business Development, Reliance Retail said, “As we look forward to the next quarter what we see is that there has been some volatility, which has come with the new Covid strain, but we believe we are well prepared to navigate through the challenges that are posed by it.”