Reliance Retail Ventures’ got off to a tepid start in FY25 with flat year-on-year growth in net profit in the first quarter of the fiscal year as heatwave conditions across the country, the general elections and subdued discretionary spending had an effect on demand.
The company reported a net profit of ₹2,453 crore that was down 9 per cent from the March quarter. Revenue growth was subdued at 6.6 per cent on year to ₹66,260 crore.
Though the company reported gross addition of 331 stores in the quarter, the net addition was 82 stores, indicating a large number of store closures or a rationalisation of stores. It ended the quarter with a total store count of 18,918 outlets — up 2.6 per cent on year.
Revenue was led by sales of air conditioners, televisions and refrigerators. While grocery sales were steady, fashion and lifestyle suffered due to lukewarm discretionary demand. The company said it was focusing on enhancing design and manufacturing capabilities while streamlining operations with focus on margin improvement. Its new format stores such as Yousta, Azorte and GAP were also scaling up, it said.
Digital and new commerce contributed 18 per cent to revenue. Private brands of the group saw new products being launched across categories with doubling in merchant base.
In the grocery segment, it continued its expansion into tier-2 cities while also setting up premium formats in affluent areas. Its Metro outlets have increased to over 200 with 30 stores being opened in the quarter.
JioMart saw average order value up 16 per cent, with non-grocery category growing 50 per cent led by electronics.