Reliance Retail has reported a net profit of INR 11,101 crore for the financial year ended on March 31, 2024 (FY24), marking the first time its annual profit has crossed the INR 10,000 crore threshold. Notably, the grocery business recorded the highest growth in FY24 at 31 percent. According to Dinesh Taluja, Chief Financial Officer (CFO) of Reliance Retail, the fashion and lifestyle segment saw a growth of about 23 percent, while consumer electronics grew by 18 percent.
The company recorded a 11.7 per cent year-on-year (YoY) growth in net profit at INR 2,698 crore in the quarter ended March 31, 2024 (Q4FY24).
The company’s profit before interest, depreciation, and tax surged by 18.1 percent year-on-year (Y-o-Y) to INR 5,632 crore. Additionally, the nation’s largest retailer witnessed a 9.8 percent Y-o-Y revenue growth in Q4, reaching INR 67,610 crore.
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Depreciation also rose due to the higher asset base resulting from the addition of new stores and supply chain infrastructure enhancements. Similarly, the finance cost increased due to higher borrowings for business expansion.
The company’s gross revenue from operations for the quarter reached INR 76,627 crore, marking a 10.6 percent increase. This growth was attributed by the company to its consumer electronics and fashion & lifestyle businesses.
In FY24, its gross revenue reached INR 3.06 trillion, marking a 17.8 percent increase compared to the previous year.
Mukesh Ambani, the chairman and managing director of Reliance Industries, discussed the retail business’s omni-channel presence, product differentiation, and focus on providing a “superior offline experience through store remodeling and layout revamping.”
In the quarter, the company expanded its footprint by adding 562 stores and recorded a total of 272 million footfalls across various formats.
Isha Ambani, Executive Director of Reliance Retail Ventures, said, “The strong expansion and growth of our retail business underscore our dedication to customer-centricity and our confidence in India’s consumption narrative.”
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During FY24, Reliance Retail raised equity funds totaling INR 17,814 crore, with RIL contributing INR 2,500 crore during the quarter.
In the quarter, it acquired the Indian operations of Kiko Milano and obtained the intellectual property, including trademarks and recipes, of sugar-boiled confectionery from Ravalgaon.
