Reliance Retail posted a 17% fall in first quarter sales, as half the
stores of the Reliance Industries NSE -1.98 % unit were
shut and another 29% operated only partially during the lockdown period.
Operating profit of the country's biggest
retailer by revenue almost halved in the quarter, as its fixed cost remained
almost similar to the pre-lockdown period despite store closures. The company
posted net sales of ₹31,633 crore in the three months ended June 30. Earnings
before interest, taxes, depreciation and amortisation fell 47% to ₹1,083 crore.
Reliance Retail said almost
80% of its nationwide network of 11,800 outlets remained either completely or
partially shuttered during the lockdown.
Against the backdrop of a challenging environment, where
store functioning and digital commerce fulfilment were severely impacted by lockdown and restrictions,
the performance, “whilst muted by the operating context, was well ahead of
market,” the company said in a statement.
Even though grocery and connectivity — involving recharge of
Jio mobile accounts — segments of Reliance Retail witnessed 21% growth
year-on-year due to pantry loading and higher data usage, consumer electronics
and fashion businesses bogged down the overall performance.
“Consumer electronics and fashion and lifestyle businesses
were hit particularly hard by the cessation of activity during the lockdown
period, as stores were closed for the most part of the quarter,” the company
said.
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