Reliance Retail bucks the slump, Q1 profit jumps 19 percent

Reliance Retail, the retail division of Mukesh Ambani-led Reliance Industries, has reported around 19 percent rise in profit before depreciation, interest and taxes (PBDIT) in the first quarter of fiscal 2016. The company has been performing well amid tough competition from ecommerce firms and low consumer sentiment,

While PBDIT increased to Rs 203 crores from Rs 171 crores from a year earlier, the company said its revenue increased 17.5 percent to Rs 4,698 crores. Like-for-like sales also increased 13 percent. While private label sales’ contribution to overall sales during the quarter increased to 10 percent up from 8 percent against the same quarter, last year. The company recently also announced the appointment of Sanjay Mehra as the Chief Executive to lead its fashion and lifestyle ecommerce business.

While Reliance Trends with 20 brands under its fold has inked a partnership with globally acclaimed fashion house to strengthen its in-house designing capabilities, Reliance Brands has entered into an exclusive partnership with Japanese retailer Muji, which sells a wide verity of household and consumer goods, and 130-year-old Dutch lingerie brand Hunkemoller in the first quarter. Reliance Retail operates 2,747 stores across 210 cities in India.