The company reported a net profit of Rs 431 crore despite 50 per cent of its stores being fully shut, 29 per cent partially operated due to the lockdown.
People stand on designated areas to mantain social distancing as they queue outside Reliance Fresh grocery store during the first day of a 21-day government-imposed nationwide lockdown as a preventive measure against the COVID-19 coronavirus in Faridabad in the state of Haryana. (Photo: AFP)
Reliance Retail on Thursday posted a 47.42 per cent decline in pre-tax profit at Rs 1,083 crore for the June quarter. The numbers stood at Rs 2,060 crore in the April-June quarter a year ago.
Company’s revenue during June quarter was down 17.22 per cent at Rs 31,633 crore as against Rs 38,216 crore in the corresponding period last fiscal.
The company reported a net profit of Rs 431 crore despite 50 per cent of its stores being fully shut, 29 per cent partially operated due to the lockdown.
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“While store expansion remains a thrust for the business, with activity being largely suspended in the lockdown period, the business was able to open 69 new stores during the quarter,” it said.
Reliance Retail operates a network of 11,806 stores in over 7,000 towns.
During the April-June quarter, it witnessed 21 per cent growth year-on-year across the operational businesses of grocery and connectivity. Besides staples, categories such as hygiene products and packaged foods did particularly well leading to higher bill values, RIL said in an earnings statement.
“While Consumer Electronics and Fashion and Lifestyle businesses were hit particularly hard by the cessation of activity during the lockdown period, as stores were closed for the most part of the quarter,” it added.
However, consumer electronics saw a strong recovery in May and June across the stores that were allowed to open.
Within fashion and lifestyle, AJIO was leveraged to drive revenues in apparel and footwear.
“AJIO’s performance during this period has been impressive as it doubled business and delivered a range of record highs, driven by a significant step up across all operating parameters, an enhanced portfolio and impactful marketing,” it said.
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