Reliance Retail Q3 pre-tax profit grows 62 per cent

Mukesh Ambani-led Reliance Retail posted a 62.3 per cent jump in earnings before interest, tax, depreciation and amortization (EBITDA) to Rs 2,727 crore for the third quarter of the financial year 2019-20. The company had posted EBITDA of Rs 1,680 crore during the corresponding period last year. Revenue for the quarter under review grew by 27.4 per cent year-on-year to Rs 45,327 crore from Rs 35,577 crore with accelerated store roll-out and strong like-for-like sales, the company said.

Revenue growth was led by robust 35.7 per cent growth in consumer electronics, fashion & lifestyle and grocery segments. Segment EBIT rose by 58 per cent year-on-year to Rs 2,389 crore from Rs1,512 crore demonstrating strong operating profit during the quarter.

Reliance Retail has added 456 stores in the quarter across consumer electronics, fashion and lifestyle and grocery, taking the total store count to 11,316. The company's retail footprint now reaches nearly 7,000 towns with the stores covering an area of 26.3 million sq.ft. till the end of the third quarter of financial year 19-20.

During the quarter, Reliance Brands, a subsidiary of RIL, also increased its equity shareholding in Future101 Design by 2.5 per cent for a consideration of Rs 2 crore, taking its equity shareholding in Future101 to 17.5 per cent.