IPO Bound Reliance Retail Reports 8.1% YoY Jump in Revenue to INR 75,630 Crore in Q1FY25 Reliance Retail reported 331 new store openings in Q1FY25 following INR 75,630 crore revenue
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
Reliance Retail, the retail division of Reliance Industries, announced a revenue of INR 75,630 crore for the first quarter of FY25 in a media release. This marked an 8.1 per cent increase from INR 69,962 crore in the same period last year. The company's EBITDA rose to INR 5,664 crore, a 10.5 per cent year-on-year growth, driven by higher customer footfall, expanded store footprint, and streamlined operations enhancing margins. EBITDA before Investment Income stood at INR 5,448 crore, reflecting an 11.5 per cent growth year-on-year. Depreciation costs increased due to the addition of new stores, while finance costs declined following the repayment of borrowings.
The business expanded its network by opening 331 new stores, bringing the total count to 18,918 and the operational area to 81.3 million square feet. The quarter witnessed a significant increase in customer visits, with footfalls reaching over 296 million, up 18.9 per cent year-on-year. The company continued to scale up its Digital Commerce and New Commerce operations, which now contribute 18 per cent of total revenue.
In an effort to streamline operations and enhance performance metrics ahead of a potential public listing, Reliance Retail closed approximately 230 stores during the June quarter, as per Business Line. This strategic move aimed at tightening operations and improving efficiency resulted in a net addition of 82 stores, after accounting for the 331 new store openings. Some closures were attributed to overlapping locations acquired from the Future Group, while others were due to loss-making or low-margin formats.
"Reliance Retail delivered resilient performance during the period and strengthened its position as India's foremost retailer. The steady expansion and growth of our retail business not only signifies our commitment to customer centricity but also mirrors the resilience and vitality of the Indian growth narrative. We continue to make strides in delivering better retail experiences for our customers as we embrace innovation to improve products, processes, and platforms along with integrating advanced technologies," said Isha M. Ambani, executive director, Reliance Retail Ventures Limited.
