Earnings

Reliance Retail: Revenue decline largely in-line; EBIT hit by lockdown

Updated : July 30, 2020 09:54 PM IST

Margins fell to 2.3 percent versus 4.7 percent in the year-ago period.

Reliance Retail reported its first quarter (Q1FY20) numbers today. Compared to the same period a year ago, revenue declined 17 percent coming at Rs 31,663 crore versus Rs 38,200 crore.

Margins fell to 2.3 percent versus 4.7 percent in the year-ago period. The EBIT reading was lower than street estimates coming in at Rs 722 crore versus Rs 1,780 crore, a fall of almost 60 percent.

The company reported a net profit of Rs 431 crore despite 50 percent of its stores being fully shut and 29 percent operating partially.

The management said the consumer electronics and fashion and lifestyle businesses were hit particularly hard by the cessation of activity during the lockdown period.

The firm had opened 69 new stores during the quarter and more than 250 stores across formats and geographies were in various stages of development before the activity was restricted and these will be commissioned in due course.

Other highlights

• Company focussed on New Commerce in Consumer Electronics, Fashion and Lifestyle business • Grocery stores witnessed strong consumer demand during the quarter • JioMart beta version launched in 200 cities to meet consumer needs

• Changing lifestyle saw surge in online orders for laptops, gaming accessories and dishwasher

Disclosure: Network18, the parent company of CNBCTV18.com, is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.

Reliance Retail: Revenue decline largely in-line; EBIT hit by lockdown

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