Reliance Retail’s Revenue Boosted by Digital and New Commerce Ventures, Contribute 18% in FY23
- ByStartupStory | April 22, 2023
Reliance Retail’s digital and new commerce businesses contributed 18% to the company’s total revenue in the fiscal year ending March 2023, according to the results released by Reliance Industries Ltd (RIL) on April 21. The company credited the growth of these businesses to the expansion of its merchant base and new product launches. Reliance Retail’s new commerce division saw its merchant count surpass 30 lakh by the end of the fiscal year.
In the fiscal year ended March 2023, Reliance Retail, the retail division of Reliance Industries Ltd (RIL), reported that digital and new commerce businesses contributed 18% of its total revenue. According to the results released by RIL on April 21, the growth of these businesses is attributed to a significant increase in the merchant base and new product launches. Reliance Retail’s net profit rose 30% YoY to INR 9,181 Cr in FY23, with revenue from operations increasing nearly 32% YoY to INR 2.30 Lakh Cr. The company saw a quarterly net profit increase of 12.9% YoY to INR 2,415 Cr in Q4 FY23, driven by overall growth across consumption baskets, new product launches and increased in-store footfall. Reliance Retail Ventures Executive Director Isha Ambani stated that the company’s investments in technology, innovation and new business segments have helped it achieve operational excellence and transform India’s retail sector.
Reliance Retail’s EBITDA for FY23 rose to INR 17,928 Cr from INR 12,381 Cr in FY22. The company cited increased depreciation due to the addition of new stores and supply chain infrastructure as the reason for higher asset base. The subsidiary also bore high finance costs due to increased borrowing for business expansion. Reliance Retail’s registered customer base rose 29% YoY to 24.9 Cr, and the total transaction count crossed the 100 Cr mark, up 42% YoY. Footfall at its stores surged 50% YoY to 78 Cr in FY23. The retail arm added 2,844 new stores, taking the total count to 18,040, with a total area of 6.56 Cr sq. ft. and a footfall of 78 Cr in FY23. Reliance Retail also increased its investments in supply chain infrastructure, adding 1.26 cr sq. ft. of warehouse space in the period under review.
Reliance Retail’s fashion and lifestyle segment saw a 19% YoY revenue growth driven by wedding season, festivals, and promotions, with higher bill values and improved conversions. Premium fashion brands grew 35% YoY, and AJIO’s catalogue size surpassed 13 Lakh. The jewellery business logged a revenue growth of 28% YoY. JioMart delivered its best quarter in terms of revenue as catalogue size grew 34% QoQ across categories. The pharma business showed steady growth, while JioMart strengthened its seller base by 56% QoQ in the non-grocery segment. Reliance Retail entered the epharmacy segment in 2020 with the acquisition of Netmeds, in which it acquired a 60% equity stake for INR 620 Cr. Reliance Retail owns several brands, including JioMart, AJIO, Trends, and more, selling a wide range of consumer products from footwear to electronics and from apparel to grocery.
Reliance Industries Limited (RIL) reported that its media business encountered challenges due to weak revenue environment, global macroeconomic pressures, and declining advertising budgets of startups. Despite investing in major sports events such as the FIFA World Cup and IPL for digital broadcasting, the media segment’s advertising revenue remained stagnant on a yearly basis, weighed down by constrained ad budgets of consumer companies and startups due to high inflation and funding crunch. It’s worth noting that most Indian startups have been forced to undertake restructuring exercises and cost-cutting measures due to the ongoing funding winter and macroeconomic headwinds. RIL’s net profit surged 18.3% YoY to INR 21,327 Cr in the fiscal year ended March 2023, while its telecom subsidiary Reliance Jio’s net profit rose 23% YoY to INR 19,124 Cr in FY23. Jio added almost 2.9 Cr users during the fiscal year, while its average revenue per user (ARPU) increased to INR 178.8 per month in Q4 FY23 from INR 178.2 in Q3 FY23.
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