Trust Retail Q3 revenue grew 18.6%, helped by well-rounded growth across all baskets and channels.- It reported a 255% growth in borrowing costs to ₹568 crore due to higher loan balances and rise in interest rates.
- Digital and new commerce contributed 18% of sales in the third quarter.
- Festive offers during Diwali, Prathmasthami and Christmas gained popularity with customers, resulting in higher conversions and invoice values, the company said.
Reliance Retail reported a 6% growth in net profit in the third quarter to ₹2,400 crore from ₹2,259 crore in the same quarter last year, weighed down by a huge rise in finance costs and write-offs.
“Borrowing costs increased due to higher loan balances and interest rate increases,” the company said in a press release Friday. It reported a 255% growth in financial expenses to ₹568 crore for the third quarter, compared to ₹160 crore in the same quarter last year.
Depreciation and amortization also increased year-on-year by 81% due to higher capitalization of assets.
Operating income rose 18.6% to ₹60,096 crore from ₹50,654 crore in Q3FY22, aided by well-rounded growth across all baskets and channels.
The retailer now has 17,225 stores and the area it operates has increased by 50.5% in the past quarter to more than 60 million square feet.
“The company continued to invest in strengthening its infrastructure capabilities by expanding by more than 2.2 million square feet. ft. warehouse space,” the company said.
Festive boost, highest visitor numbers ever
The quarter recorded the highest ever visitor numbers of 201 million across all formats and regions. “Retail continued to make strong progress with more Indians choosing to shop at Reliance Retail stores. We are focused on delivering superior products and value to customers and improving profitability,” said Mukesh Ambani, CMD of Reliance Industries.
The company’s latest ventures – digital and new commerce grew 38% yoy and contributed 18% of sales.
The grocery business grew 65% and the consumer electronics segment, excluding appliances, grew 45%. The fashion and lifestyle business grew 13% yoy, supported by festival and wedding season sales. “Festive offers during Diwali, Prathmasthami and Christmas gained popularity with customers resulting in higher conversions and invoice values. Winter clothing was hit by a slowdown in the start of the winter season,” the company said.
Reliance Retail said its premium brand business grew 38% yoy, led by higher footfall and new store openings. It also launched mono-brand websites for Tumi, Hunkemoller and Pottery Barn during that time.
The company claims that the acquisition of Sosyo, Lotus Chocolate and the launch of the Independence brand will strengthen its portfolio. It also acquired V Retail (Centro Footwear). In the third quarter, JioMart also strengthened its catalog by 71% and expanded its seller base by 83% from the previous quarter.
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