Reliance Retail Registers Net Profit of ₹2,836 Crore in Q2, Revenue at ₹76,302 Crore

Reliance Retail Ventures Limited (RRVL) reported its financial results for the second quarter (Q2) of the fiscal year 2024-25 (FY25). The company achieved a net profit of ₹2,836 crore on a revenue of ₹76,302 crore. However, this marked a 1.1% decline compared to the same period last year, primarily due to softer demand in the Fashion and Lifestyle (F&L) segment and strategic adjustments in the B2B business.

Focus on Streamlined Operations

The dip in revenue is attributed to the company's focus on streamlining its operations and a measured approach to its B2B business, which was aimed at improving margins. Despite the revenue decline, Reliance Retail managed to increase its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) slightly by 0.3% year-on-year (YoY) to ₹5,850 crore. EBITDA from core operations saw a growth of 1%, reaching ₹5,675 crore, and operational margins improved by 40 basis points, standing at 8.5%.

Expansion and Depreciation

Reliance Retail expanded its footprint by adding 464 new stores during the quarter, bringing the total to 18,946 stores. The retail giant now operates across 79.4 million square feet of retail space. The company also recorded over 297 million footfalls in Q2 FY25, showing a 14% YoY increase. Depreciation expenses for the quarter amounted to ₹1,420 crore, reflecting a 1.5% YoY increase due to accelerated depreciation on stores that were closed.

Continued Investment in Technology and Infrastructure

Isha M. Ambani, Executive Director of Reliance Retail Ventures, emphasized the company's commitment to building a strong foundation for future growth through continued investments in technology and infrastructure. "We continue to strengthen our customer proposition with innovative products that span everyday essentials to premium offerings," she said.

Digital and New Commerce Initiatives

The company has been scaling up its Digital Commerce and New Commerce initiatives, which contributed 17% to overall revenue. With a registered customer base of 327 million, Reliance Retail remains one of the most preferred retailers in India. JioMart, the company's e-commerce platform, showed strong growth in non-grocery categories, with the average order value (AOV) doubling YoY. The seller base also expanded by 46%, with a 13% increase in product range.

Growth in Consumer Electronics and Service Expansion

Reliance's digital electronics stores under the consumer electronics division performed well, surpassing 650 outlets across the country. The company attributed a 60% YoY revenue increase to the "Digital India" campaign, which promoted consumer electronics. Additionally, the on-demand service resQ expanded its presence to 150 cities, with service volumes increasing by 28% YoY.

Challenges in Fashion and Lifestyle Segment

The Fashion and Lifestyle segment faced challenges due to weaker demand, but Reliance Retail focused on product innovation and customer engagement to counter this. The company launched exclusive partnerships, including one with Delta Galil to expand lingerie and activewear offerings, and introduced the ASOS brand in India. AJIO, the company's fashion e-commerce platform, gained 1.8 million new customers and expanded its product catalog by 25%, introducing new brands like H&M, Timberland, and ASOS. Additionally, the youth-centric brand Yousta crossed 50 stores within its first year.

Strong Performance in Grocery Division

The grocery segment continued its steady growth, driven by Smart Bazaar and Smart store formats. Key categories like confectioneries and snacks saw a 30% YoY growth, fruits grew by 26%, and apparel by 49%. The company also reported its highest-ever single-day sales on Independence Day during the "Full Paisa Vasool Sale."

Continued Growth in New Commerce for Grocery

Reliance Retail's Grocery New Commerce business, particularly the Metro format, continued to grow, deepening its engagement with trader and HoReCa (Hotels, Restaurants, and Caterers) segments. Marketing campaigns such as "Freedom Sales" and "Mehangai Se Azadi" contributed to the division's growth. JioMart, the quick commerce vertical, also expanded significantly, with a notable increase in non-grocery categories, especially consumer electronics. The platform's AOV doubled YoY, driven by a broader seller base and product offerings.

Conclusion

Despite a slight dip in revenue, Reliance Retail has shown resilience and a strategic approach to growth. By expanding its physical store network, investing in technology, and scaling up its digital and new commerce channels, the company continues to strengthen its market leadership. With strong growth across multiple segments and a focus on customer-centric innovations, Reliance Retail is well-positioned for future expansion.

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JSW Cement Expands Vijayanagar Plant's Capacity by 2 MTPA with ₹461 Crore Investment

JSW Cement, a part of the JSW Group, announced on October 1, 2024, that it has successfully expanded the production capacity of its Vijayanagar plant in Karnataka. The company has commissioned an additional 2 million tonnes per annum (MTPA) grinding capacity at the plant with a total investment of ₹461 crore. This development brings the total capacity of the Vijayanagar plant to 6 MTPA and raises JSW Cement's overall installed grinding capacity to 20.6 MTPA.

Green Cement Production and Sustainability Focus

The newly added capacity aligns with JSW Cement's focus on producing green cementitious products. The company is committed to sustainable business practices and manufacturing processes, which emphasize minimal carbon footprints. This expansion is a step toward achieving its broader goal of increasing its grinding capacity to 40.85 MTPA in the near future through both brownfield and greenfield expansions across India.

Brownfield and Greenfield Expansion Strategy

JSW Cement is implementing its long-term strategy to develop brownfield and greenfield projects across northern and central India. Planned expansions include new units in key states such as Rajasthan, Punjab, Madhya Pradesh, and Uttar Pradesh, which will significantly increase the company's overall production capacity. These projects will help JSW Cement extend its presence across India, supporting its growth objectives and reinforcing its commitment to innovation and sustainable production.

CEO's Vision on Circular Economy and Innovation

Nilesh Narwekar, CEO of JSW Cement, reiterated the company's commitment to supporting global sustainability goals. "As we continue to expand, our focus will remain on innovative and sustainable manufacturing practices that support the global shift towards a circular economy," Narwekar stated. He further emphasized that JSW Cement's future growth would be driven by these principles, ensuring that the company remains at the forefront of the green cement industry.

JSW Cement's Journey Towards Growth

With this latest expansion at Vijayanagar, JSW Cement has strengthened its foothold in Karnataka. The company aims to become one of the top cement manufacturers in India by continuing to invest in infrastructure that promotes sustainable practices. As part of its growth trajectory, JSW Cement plans to meet increasing demand for eco-friendly building materials while contributing to the development of the country's construction sector.

JSW Cement's efforts to scale up its operations are part of the JSW Group's integrated approach to business, where sustainability, innovation, and growth go hand in hand. With the completion of this expansion project, the company is well on its way to achieving its vision of becoming a leader in the cement industry, powered by green initiatives and cutting-edge technologies.

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