Reliance Retail sees sequential revenue drop in Q4

There has been a decline in revenue in the fourth quarter ending March 31, 2016 at Reliance Retail. The company, which is a retail division of Mukesh Ambani-led Reliance Industries, posted 4.3 per cent sequential decline in revenue. Its revenue stood at Rs 5,781 crores in this quarter as compared to the third quarter when it was Rs 6,042 crores.

What is interesting is that the revenue of the company grew by 21 per cent year-on-year against Rs 4,788 crores during the same period last year. Earning before interest and taxes (EBIT) for the quarter stood at Rs 131 crores, up 26 per cent year-on-year while profit before depreciation, interest and taxes (PBDIT) for Q4 FY16 was Rs 235 crores, up 17.5 per cent year-on-year.

However, the company has registered a growth of 22.5 per cent. For FY16, it reported a turnover of Rs 21,612 crores as against Rs 17,640 crores during the same period. In the last five years, as the company said, revenue compound annual growth rate (CAGR) has sustained at 29 per cent. The business delivered highest ever PBDIT of Rs 891 crores in FY16 as against Rs 784 crores in the previous year. EBIT for the year stood at Rs 506 crores, up 21.3 per cent year-on-year.

Encouraged by the growth, Reliance Retail added 70 Reliance Trends stores during the year, and now its total count stands at 271 stores. Also, it launched a new store concept under Reliance Trends inspired by the runways of London, Paris and New York. The idea behind this is to help customers discover styling ideas and what’s new in the world of fashion, thus elevating the shopping experience.