Reliance Retail Q2 revenue down 3.5% to Rs 66,502 cr, profit up 1.28%

New Delhi: Reliance Retail Venture Ltd (RRVL), the retail arm of billionaire Mukesh Ambani-led Reliance Industries, reported a 3.53 per cent decline in operating revenue to Rs 66,502 crore for the quarter ended in September 2024.

Profit after tax was marginally up 1.28 per cent at Rs 2,836 crore for the second quarter of the 2024-25 financial year.

The company had reported a revenue of Rs 68,937 crore and and profit after tax of Rs 2,800 crore for the July-September quarter a year ago, according to the regulatory filing of Reliance Industries Ltd (RIL).

"Growth impacted by weak Fashion and Lifestyle (F&L) demand, continued focus on streamlining of operations and calibrated approach to B2B business to improve margins," according to an earning statement from Reliance Industries.

Reliance Retail's gross revenue, which includes other income, was also down 1.09 per cent at Rs 76,302 crore in the September quarter of FY25. It was at Rs 75,615 crore in the year-ago quarter.

However, the pre-tax profit (EBITDA) of the country's leading retailer was up 1.03 per cent in the June quarter of FY25 to Rs 5,675 crore.

Reliance Retail continued its expansion and opened 464 new stores, taking the total store count to 18,946 with area under operation at 79.4 million sq. ft by the end of the September quarter.

Moreover, Digital Commerce and New Commerce contributed to 17 per cent of the total revenue of Reliance Retail as it continued to focus on scaling these new-age channels.

Commenting on the results, RIL Chairman and Managing Director Mukesh D Ambani said, “The retail segment continues to increase its consumer touchpoints and product offerings across physical and digital channels.

“The unique omnichannel 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."

He further said that the focus on strengthening retail operations will help the company rapidly scale up this business in the coming quarters and years and sustain industry-leading growth momentum.

Moreover, RRVL also recorded a 14.23 per cent increase in the number of footfalls at its stores at 297 million in the September quarter.

Reliance Retail's registered consumer base also went up 16.37 per cent to 327 million in the September quarter, making it "one of the most preferred retailers in the country," it said.

In the June quarter, Reliance Retail's total number of Transactions also went up 8.88 per cent to 334 million.