Reliance Retail Q2FY20 Results Update- 20.10.2019

Reliance Retail, the largest retailer in India and a subsidiary of Reliance Industries demonstrated a stellar performance amidst the so-called consumption slowdown, and GDP growth rate declining to the lowest levels since the past decade.

The Reliance Industries Mcap reaching no. 1 in India is due to stellar performances by the Retail and JIO segment.

The total store count of Reliance Retail now equals 11,000. With 337 stores added this quarter, Reliance Retail has been adding nearly a store every day for the past few years!

Financials of Q2FY20

(i) Revenue increased 27% y-o-y to INR 41,202 crores. 

(ii) EBDIT increased by 66.8% to nearly INR 2,322 crores. 

(iii) Net Profit increased 55% to INR 1,148 crores.

(iv) Cash Profit (adding back Depreciation and Amortization to Net Profit) increased by a whopping 70% to INR 2,341 crore

(v) EBIT Margin has increased to 4.9%.

UnlistedZone View

The way Reliance Retail is performing, the annualized revenue for FY20 will easily cross 1.50 lakh cr. So if we give Mcap/Revenue of 2.5x to Reliance Retail and with outstanding shares of ~498 cr, the share price can easily go up to 750 per share.