The net profit of the retailer has grown by 1.3 per cent year-on-year (YoY) to Rs 2,836 crore in the second quarter of the current fiscal
Impacted by the weak fashion and lifestyle demand and streamlining of operations, Reliance Retail Ventures or RRVL has reported a marginal dip in its operating revenue for the second quarter of the current financial year. As per the company’s consolidated financial results, the operating revenue dropped to Rs 66,502 per cent in Q2FY25, a 3.5 per cent dip on a year-on-year (YoY) basis.
However, the retail arm of Reliance Industries saw its net profits grow by 1.3 per cent YoY to Rs 2,836 crore in Q2FY25 from Rs 2,800 in Q2FY24. The gross revenue of Reliance Retail also dipped 1.09 per cent YoY at Rs 76,302 crore in the recently concluded quarter.
The earnings before interest, tax, depreciation and amortisation (EBITDA) witnessed a 0.3 per cent YoY growth to Rs 5,850 crore in Q2FY25 from Rs 5,830 crore during the same quarter a year ago. The EBITDA margin also showed an uptick of 30 basis points to 8.8 per cent during the quarter from 8.5 per cent in Q2FY24.
“The retail segment continues to increase its consumer touchpoints and product offerings across physical and digital channels. The unique omni-channel retail model enables the business to service a wide range of requirements of a vast, heterogeneous customer base. The retail business continues to partner with renowned domestic as well as global players, expanding its basket of quality product offerings,” stated Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries or RIL.
The retailer continued to expand as it opened 464 new stores during the quarter and took the total store count to 18,946 with the area under operation at 79.4 million square feet. The quarter recorded footfalls of over 297 million, a growth of 14 per cent YoY. The registered customer base grew to 327 million.
As per the results, depreciation for Q2FY25 was at Rs 1,420 crore, up 1.5 per cent YoY. Depreciation for Q1FY25 was higher due to accelerated depreciation for stores under closure. The EBITDA from operations was at Rs 5,675 crore, up 1 per cent YoY.
