- 24 Jan 2022
- ICICIdirect Research
Record quarterly revenues with strong demand across consumption basketRELIANCE - 2521 Change: 14.10 (0.56 %)
News: Reliance Retail reported one of its best quarterly performance on account of record number of store additions (837 added in Q3FY22) and normalisation of footfalls to pre-Covid levels (95%). Revenues for Q3FY22 grew 53% YoY (27% QoQ) to Rs.57714 crore. EBITDA margins (excluding other investments) remained constant YoY at 6.1%, with absolute EBITDA increasing 53% YoY to Rs.3522 crore. Demand was robust across all consumption categories, with fashion and electronics segment outperforming (2x YoY growth).
View: While the new strain has resulted in sporadic disruptions, the company expects to accelerate the growth momentum with normalisation of the operating environment. Reliance Retail’s widespread physical store network (40 mn. Sq. Ft.) would further enhance its omni channel capabilities and position it as a frontrunner to garner consistent business growth by capturing a larger pie of the Indian retail sector opportunity.