With petrol pumps, Reliance turns retail into Rs 34,000-crore biz

The company's revenue for the fourth quarter was Rs 10,332 crore, up 18.9 per cent sequentially

Reliance Retail, the retail arm of Mukesh Ambani-led Reliance Industries, reported a 65.6 per cent jump in profit before depreciation, interest and tax (PBDIT) to Rs 366 crore for the quarter ended March 31, against Rs 221 crore in the same period last financial year. The PBDIT stood at Rs 333 crore in the quarter ended December 31.

The figures are not strictly comparable, though, as the company put its petroleum retail business under its organised retail segment from 2016-17.

The company’s revenue for the fourth quarter was Rs 10,332 crore, up 18.9 per cent sequentially. Revenue for the full year was Rs 33,765 crore ($5.2 billion), up 60.2 per cent as compared to the previous year. But, again, the previous year’s numbers did not include fuel retailing.

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“The increase in turnover was led by growth across all consumption baskets,” the company said in a media release.

During the last quarter, Reliance Retail added 63 stores across various store concepts. At the end of the financial year, the retailer operated 3,616 stores across 702 cities with an area of over 13.5 million square feet.

“Though the numbers of Reliance Retail are not comparable with other retailers, it is important to note that unlike some large retailers it is profitable,” says Arvind Singhal, chairman and managing director at management consulting firm Technopak.(read more)