On its quick commerce foray, RIL said that JioMart is scaling up its quick commerce pilot by serving customers through its store network
The YoY decline in revenues of RIL’s media and entertainment business was largely offset by growth in subscription revenue that was driven by new affordable monthly plans of JioCinema
Reliance Retail reported a 4.6% YoY growth in profits to INR 2,836 Cr in Q2 FY25 while operating revenue declined 3.5% YoY to INR 66,502 Cr
Inc42 Daily Brief
Stay Ahead With Daily News & Analysis on India’s Tech & Startup Economy
The digital and new commerce business contributed 17% to Reliance Retail’s total revenues in the second quarter (Q2) of the financial year 2024-25 (FY25).
“The retail segment continues to increase its consumer touchpoints and product offerings across physical and digital channels. The unique omnichannel retail model enables the business to service a wide range of requirements of a vast, heterogenous customer base,” the chairman and managing director of Reliance Industries Ltd (RIL), Mukesh Ambani, said.
Overall, Reliance Retail’s net profit rose 4.6% year-on-year (YoY) to INR 2,836 Cr in Q2 FY25 compared to INR 2,800 Cr in the year-ago period. Sequentially, profit increased 3.3% from INR 2,746 Cr in Q1 FY25.
Meanwhile, the retail giant’s operating revenue declined 3.5% YoY to INR 66,502 Cr in Q2 FY25 against INR 66,260 Cr in Q1 FY25. The top line witnessed a slight drop of 0.4% from INR 66,260 Cr in Q1 FY25.
Digital & New Commerce Biz Scale Up
On its quick commerce foray, RIL said that JioMart is scaling up its quick commerce pilot by serving customers through its store network.
Meanwhile, the company added that average order value (AOV) for non-grocery categories on JioMart jumped 2X year-on-year (YoY) in Q2 FY25 due to an uptick in consumer electronics sales.
In a statement, the company said that its overall seller base on JioMart jumped 46% YoY while option count rose 13% YoY\. Additionally, RIL claimed that fashion ecommerce arm AJIO added more than 18 Lakh new customers in Q2 FY25.
JioCinema To The Rescue
The conglomerate’s media and entertainment business reported a 2.1% (YoY) fall in revenues to INR 1,825 Cr in Q2 FY25, down from INR 1,865 Cr in Q2 FY24, mainly on account of a drop in movie segment earnings.
Viacom18 Studios, which had two major movie releases in Q2 FY24, had no releases this quarter, contributing to the decline. However, the company noted that this impact was largely offset by growth in subscription revenue, driven by new affordable monthly plans of JioCinema.
The company also reiterated that JioCinema doubled its paid subscriber base sequentially to over 1.6 Cr.
Meanwhile, Jio Platforms posted a 23.4% YoY increase in its consolidated net profit to INR 6,539 Cr in the second quarter of FY25.
At the group level, RIL witnessed a 3.6% decline in net profit to INR 19,101 Cr in Q2 FY25 from INR 19,820 Cr in the year-ago quarter. However, its revenue from operations rose 0.2% YoY to INR 2.35 Lakh Cr during the period under review from INR 2.34 Lakh Cr in Q2 FY24.
Note: We at Inc42 take our ethics very seriously. More information about it can be found here.