Reliance Retail may break another record with new stores and more buyers

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Reliance Industries Ltd is set to announce its financial results for the January–March quarter of the financial year 2023–24 on Monday, April 22. The Street is expecting a positive trajectory for Reliance Retail Ventures Ltd (RRVL), the retail arm of the Mukesh Ambani-led conglomerate, with expectations of notable improvements in revenue and Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA).

Domestic brokerage Kotak Institutional Equities has projected a 21.6% year-on-year (YoY) increase in revenue at ₹84,251 crore. EBITDA is expected to show a robust 24.8% surge from the previous year, totaling ₹6,148 crore. Comparing with the preceding quarter’s EBITDA of ₹6,271 crore, this reflects a slight dip. However, the margins are predicted to rise to 7.3% from 7.1% in the same period last year.

Increased store footprint, higher footfalls and benefits of operating leverage are seen as the key drivers for growth during the quarter under review. In the preceding quarter, the retail chain expanded its reach by adding 252 new stores, bringing the total store count to 18,774.

The performance of the company’s digital commerce and new commerce will be a key metric to look out for in the result statement. The performance of the omnichannel beauty retail platform Tira, which was launched last year in April, will also be in focus.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow