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Reliance Retail on Thursday reported a 47.42 percent decline in pre-tax profit at Rs 1,083 crore for the quarter ended June 2020, impacted by the coronavirus lockdown. The retail arm of Reliance Industries Ltd (RIL) had posted a pre-tax profit or EBITDA (earnings before interest, tax, depreciation and amortisation) of Rs 2,060 crore in the April-June quarter a year ago.

Revenue during the quarter was down 17.22 percent at Rs 31,633 crore as against Rs 38,216 crore in the corresponding period last fiscal.

“Against the backdrop of a challenging environment, where store functioning and digital commerce fulfilment was severely impacted by lockdown and restrictions (50 percent stores were fully shut, 29 percent partially operated), Reliance Retail clocked significant revenues of Rs 31,633 crore and EBITDA of Rs 1,083 crore in the quarter,” RIL said in an earnings statement.

“The performance whilst muted by the operating context, was well ahead of market,” it added.

During the quarter, the retail area operated by the company increased 26.1 percent to 29 million square feet as against 23 million square feet earlier.

“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.

“Overall, Reliance Retail’s 1Q FY21 performance is resilient considering the adverse operating environment. Notably, decisive actions are being taken across the breadth of the business to adapt and strengthen operating models/capabilities for a post COVID world,” it said.

During the April-June quarter, it witnessed 21 percent 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, it added.

“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.

“While footfalls remained much lower than normal, the business witnessed higher bill values and better realisations,” it added.

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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“We are still looking for. We want a right partner and a right model,” Philip Auld, Managing Director, Trent told PTI when asked about West Asia and Africa ventures.

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“I am optimistic for the mid-term. We’ll open 30 Westside stores this year of which 10 will be in the east. Last year, the number was 18. In the next 3-5 years, we’ll open at least 30 stores a year,” Auld told PTI.

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The company has also recently signed up Ayushmann Khurrana and Bhumi Pednekar as the face of the brand and a campaign featuring the two is already underway.

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Both Myntra and Jabong today have a combined base of 12 million customers. However, the customer overlap between both the brands today is close to 28 percent.

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