Reliance Industries (RIL), distribution subsidiary, Reliance Retail reported strong quarterly profits in September 2021 (T2FY22). Subsidiary RIL posted net profit of Rs1.695cr at T2FY22, increasing 74.2% year-on-year.
In addition, the company achieved a strong performance with consolidated gross revenue recorded at Rs45,426cr for 2Q FY22, growing 10.5% year-on-year and above the pre-COVID period. Petro non-retail sales increased 16% year-over-year.
The business posted EBIDTA of Rs2,913cr, up 45.2% year-on-year, driven by a favorable income mix, continued focus on cost management and investment income. EBITDA margin increased 180 basis points year on year due to strong operating leverage.
RIL in its audit report on Reliance Retail’s second quarter performance said the quarter saw robust growth across all consumer baskets, led by a strong upturn in consumer sentiment amid the festivities, easing markets. restrictions related to COVID and vaccinations.
RIL added that the company has restored growth momentum in fashion and lifestyle with sales closing above pre-COVID levels. Consumer Electronics and Groceries maintained strong growth momentum.
During the quarter, 813 new stores were ready, bringing the total to 13,635 stores in 37.3 million square feet of retail space while the company ordered 86 warehouses and distribution centers spread over an area 2.5 million square feet of space to strengthen its service capabilities.
For the quarter, Reliance Retail’s cash profit increased 62.9% year-on-year to Rs 2,293cr.