Reliance Retail Shows Promising Revenue Growth in Q4 Despite COVID-19 Lockdown

Reliance Retail’s earnings before interest, tax, depreciation and amortisation (Ebitda) for FY20 grew 55.7% to Rs 9,654 crore.

Reliance Retail’s revenues increased 24.8% year-on-year (y-o-y) to Rs 1.63 lakh crore for the full financial year 2020. Revenue during the quarter grew 4.2% y-o-y despite lockdown-related disruptions in March. Earnings before interest and tax (Ebit) of the retail segment grew 49% y-o-y to Rs 8,263 crore in FY20. “Overall, the year has been a growth year with March being a tepid month due to the COVID-19 lockdown impact,” the company said.

Reliance Retail’s earnings before interest, tax, depreciation and amortisation (Ebitda) for FY20 grew 55.7% to Rs 9,654 crore. Ebit in the fourth quarter stood at Rs 2,062 crore, up 20% y-o-y. However, sequentially, the Ebit for the retail segment registered a decline of 13.7% during the quarter under review. Ebit margin grew by 10 basis points sequentially to 5.4% in the March quarter.

The company added 496 stores in the fourth quarter and 1,553 stores during FY20, taking the overall count of 11,784 stores, covering the area of 28.7 million sq ft. Amid massive supply chain disruptions, the “retail business leveraged its network of collection centers and actively engaged with key suppliers to ensure priority supplies and assure quantity of essentials,” the company said. Reliance Retail now operates 11,784 stores covering 28.7 million square feet with over 1,500 stores opened in the year. Reliance Digital stores continue to maintain leadership in the consumer electronics space, the company said.

Though the non-grocery retail business was impacted by the lockdown, grocery stores recorded their highest ever sales, the company said. Grocery segment’s growth was led by SMART and Reliance Fresh and driven by store expansion and like-for-like growth in existing stores. Daily orders quadrupled during the lockdown period.

“(In) March, grocery stores recorded their highest ever sales surpassing the Diwali month performance despite logistical challenges. In a response to the lockdown situation, all grocery stores were kept open for extended hours to provide access and availability of essential products to customers in these trying times,” the company said. The fashion and lifestyle segment “delivered a credible performance despite shutdown,” the company said.

Earlier this month, Reliance Retail also inked a partnership with WhatsApp Business to compete with e-commerce food and groceries retailers like BigBasket and Grofers. “JioMart would be integrated with WhatsApp to ensure that consumers are able to access the nearest kiranas who can provide products and services to their homes by transacting seamlessly with JioMart using WhatsApp,” the company said.

Source: Financial Express

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