Reliance Retail, a retail arm of Mukesh Ambani’s Reliance Industries (RIL), has outshined the peers with its spectacular results in the quarter ended on March 31, 2021. Reliance Retail continues to be the driver of revenue and profits for Mukesh Ambani.
The retail firm, on 30 April reported a 45% jump on year-on-year (YoY) basis in its net profit at Rs 2,247 crore in Q4FY21. The company’s revenue surged 23.2% to Rs 47,064 crore for the period, compared to Rs 38,211 crore, an year ago. On a quarter-on-quarter (QoQ) basis, the company’s revenue gained 24.4% from Rs 37,845 crore.
Revenue for the FY 2020-21 stood at Rs 1,57,629 crore, lower by 3.3% compared to Rs 1,62,936 crore during the previous year. However, net profit marginally increased 0.6% to Rs 5,481 crore for year year ended on March 31, 2021. The retail firm clock EBITDA of Rs 9,789 crore during the period under review, 1.1% up from the year ago.
Despite the Covid-19 pandemic, the company added 1,456 new stores and generated over 65,000 jobs during the distressed and challenging year. Out of these, 826 were introduced in the latest quarter. total store count now stands at 12,711 stores, covering 33.8 million sq ft. at the end of the year.
“Reliance Retail delivers a resilient performance against the backdrop of an unprecedented and challenging operating environment, arising from the COVID pandemic situation that emerged at the start of the year,” the company said in a release as it declared its results.”
Reliance’s online bets – JioMart and Ajio.com – continue to be the drivers of growth. As per Reliance, its grocery vertical hit all-time high revenues with a double digit quarterly growth. “3x growth in JioMart Kirana partnerships over last quarter has extended to 10 new cities and taking the count to 33 cities,” said the company.
Ajio.com – the company’s fashion and lifestyle e-commerce bet – has seen four times growth in revenue over the last one year. Meanwhile, Reliance Trends, the company’s fashion and lifestyle stores, now contributes over 55% to the retail arm’s total revenue.
Last year, Reliance Retail Venture, the holding company for Reliance Retail, raised about Rs 47,265 crore from global private equity funds by selling 10.09% stake. Unlisted shares of Reliance Retail have more than trebled since January last year. It still has more upside potential.
According to the current share price, the market cap of Reliance Retail has crossed the $100 billion mark. It is the fourth domestic firm to achieve this feat. The company is valued at Rs 7.50 lakh crore, surpassing blue chips like Hindustan Unilever and HDFC Bank.