RIL Q1: Digital & New Commerce Business Contributes 18% To Reliance Retail Revenue

The digital and new commerce business contributed 18% to the total revenue of Reliance Retail in the June quarter (Q1) of the financial year 2024-25 (FY25). 

The retail giant did not disclose the contribution of the segment in its quarterly financial statements for the quarter ended March 2024. However, the vertical accounted for 19% of the retail giant’s total revenue in Q3 FY24. 

“Retail business delivered robust financial results, as compared to last year, well supported by all consumption baskets… The digital and new commerce segments are also scaling up rapidly,” Reliance Industries Ltd (RIL) chairman and managing director (MD) Mukesh Ambani said.

Overall, Reliance Retail’s net profit jumped 4.6% to INR 2,549 Cr in the quarter ended June 2024 from INR 2,436 Cr in the year-ago period. Sequentially, profit declined more than 7% from INR 2,746 Cr in Q4 FY24. 

Meanwhile, operating revenue rose 6.6% YoY to INR 66,260 Cr in Q1 FY25 even as the top line witnessed a sequential decline of nearly 2% from 67,610 Cr in the quarter ended March 2024. 

“Reliance Retail delivered resilient performance during the period and strengthened its position as India’s foremost retailer… We continue to make strides in delivering better retail experiences for our customers as we embrace innovation to improve products, processes, and platforms along with integrating advanced technologies,” said Reliance Retail Ventures’ executive director Isha Ambani.

New Commerce Business Scales Up

In a statement, the retail conglomerate said that JioMart Digital, its consumer electronics vertical, saw its merchant base jump 14% year-on-year (YoY) during the quarter under review. 

Overall, the digital commerce platform JioMart saw average bill value grow 16% YoY, largely on account of surge in consumer electronics sales due to the ongoing heat wave in North India. 

“The business (JioMart) continued investments in stores, platform enhancements, product design and sourcing capabilities to further strengthen the value proposition to the customers. These initiatives will help sustain growth momentum in (the) near and medium term,” said the company. 

Fashion ecommerce platform AJIO also added 1.9 Mn customers during the quarter under review and expanded product catalogue by over 20% compared to the same period last year. 

The retail major also said that its “grocery new commerce” arm opened 30 new “Metro format” stores in Q1 FY25, taking the total store count to over 200 spanning 180+ cities.

IPL Continues To Drive JioCinema

The conglomerate said that its “entertainment revenue” declined 5% YoY as the revenue from the Indian Premier League (IPL) was split between two quarters (Q4 FY24 and Q1 FY25) as against the entire revenue from the tournament being booked in Q1 FY24 last fiscal year.

It clocked a viewership of 620 Mn for IPL 2024, up 38% YoY. 

“JioCinema also witnessed a sharp increase in engagement, with audiences spending a total of more than 350 Bn minutes watching the most popular annual sports spectacle, an increase of 50%+ YoY. Viewers watched an average of 75 minutes per session, up from 60 minutes last year,” added the statement.

Meanwhile, it said that JioCinema’s non-sports advertising saw “strong growth” albeit on a small base on the back of revamped SVOD offering. 

The company also said that it continued to make investments in the sports and digital segments to drive long-term growth for its entertainment business. 

Giving an update about the merger between Viacom18 and Star India, the conglomerate said that it obtained the approvals of their respective creditors in June this year, in line with the directions of National Company Law Tribunal (NCLT). The companies are in the process of obtaining other requisite approvals for completion of the transaction, added RIL. 

Meanwhile, Reliance‘s digital giant Jio Platforms reported a 12% YoY jump in its consolidated net profit to INR 5,693 Cr in Q1 FY25 even as operating revenue soared 13% YoY to INR 29,449 Cr during the period under review.

Overall, RIL saw its consolidated net profit decline 4% YoY to INR 17,448 Cr in the quarter ended June 2024.