Reliance Retail posts first-ever pre-tax profit at Rs 106 cr

Reliance Industries today said its retail arm -- Reliance Retail -- has turned around and reported its first-ever pre-tax profit of Rs 106 crore for the three months to December on the back of a 38 per cent spike in revenues at Rs 3,927 crore driven by festive sales.

"I am happy to say Reliance Retail has reported its first- ever Ebitda profit of over Rs 100 crore in the December quarter. We will give you the exact net profit numbers in the full year results," Reliance Group CFO Alok Agarwal told reporters here this evening.

The retail arm, launched in 2006, reported a turnover of Rs 10,857 crore for the first nine months of the fiscal, a growth of 40 per cent from Rs 7,749 crore in the corresponding period last year, he said, adding the nine-month Ebitda stood at Rs 271 crore.

The firm, which runs formats like Reliance Fresh, Reliance Super and Reliance Hyper, had a total turnover of Rs 10,800 crore in FY'13.

"Our retail business is on rapid growth trajectory with 38 per cent revenue growth during the quarter."

Agarwal said the company opened one store each every day during the quarter, taking the overall number to 1,577 across 141 cities as of December-end.

Asked whether company can support itself going forward, he said in the past quarter the parent (RIL) had pumped in only under Rs 500 crore into the venture.

"Aided by increased shopping activities during the festive season and several initiatives undertaken to drive value and offerings, the business recorded a like for like growth of up to 21 per cent across various format sectors."

According to the company, "value formats sustained the growth momentum to maintain leadership position in the grocery retail business while Reliance Market, the cash and carry format, continued its rapid geographical expansion."

The fashion and lifestyle business delivered accelerated performance in Q3, he said, adding the company shut down its non-veg food format 'Delight' during the quarter taking into account "consumer sentiment".