Higher Bills Propel RRVL’s Grocery Biz

Higher bill value more than compensated for the lower footfall at Reliance Retail Ventures Ltd’s (RRVL) grocery stores in the September quarter, as consumers were wary of visiting physical retail outlets amid the covid-19 crisis.

The subsidiary of the oil-to-telecom conglomerate Reliance Industries Ltd (RIL), recorded robust growth across all consumption baskets in July-September, posting revenue of ₹41,100 crore, up from ₹31,620 crore in Q1, as restrictions were eased across India and physical stores resumed business.

“The strong growth momentum in grocery was sustained as it delivered yet another quarter of performance well ahead of market. The quarter saw the continued trend of lower footfalls being more than offset by higher bill values," the company said in a statement.

Under the grocery segment, staples and processed food categories drove growth, with home and personal care products delivering strong performance as consumers continued to work from home.

Reliance Retail is set to buy Future Group’s retail, wholesale and logistics business for ₹24,713 crore. However, the deal faces a legal hurdle with Amazon.com Inc. winning a stay order from Singapore International Arbitration Centre. Despite the order, RIL has said it will proceed with the deal.

Reliance Retail registered “4X increase in orders (under JioMart-kirana stores partnerships) over Q1FY21. With a strong value proposition and uninterrupted service despite operating constraints, JioMart continues to win the trust of kirana partners", RIL said.

The firm's operating revenue (earnings before interest, tax, depreciation and amortisation) was ₹2,009 crore in the quarter, compared to ₹2330 crore in the year-ago period, while Ebitda margin fell to 5.4% from 6.3% last year.

“Retail business activity has normalised with strong growth in key consumption baskets as lockdowns ease across the country,'' said Mukesh Ambani, chairman, RIL.

Besides grocery, other segments also recovered from covid-led disruptions in April and May, with connectivity, consumer electronics and fashion and lifestyle clocking significant improvement.

While revenue from consumer electronics doubled compared to the June quarter, “and notably double-digit growth over the previous year, despite lower footfalls", demand for laptops, productivity devices, high-end televisions, air care and appliances jumped.

Though all segments of the retail business have recovered with gradual opening of physical stores, footfall is yet to touch pre-covid levels. RIL said activity in retail will reach pre-covid levels in the December quarter along with festival demand supporting growth.

“Increased footfall and store openings have contributed to the rebound in retail revenues, with 85% of stores now open," V. Srikanth, joint chief financial officer (CFO) of RIL, said in a virtual press conference on Friday.

Sandip Ginodia , CEO

ALTIUS INVESTECH PVT LTD

We deal in over 60 unlisted companies with 15 years of experience

For latest prices visit : www.abhisheksecurities.com/unlisted.htm / call : 09830271248 .

Email : ginodiasandip1@gmail.com

Reliance's JioMart is averaging half a million orders per day; WhatsApp driving growth

JioMart , Reliance's online-to-offline commerce platform that launched in May , has scaled up rapidly, riding on the pandemic-fuelled digital acceleration. The service, which went live in 200 cities across India, is currently processing an average of 500,000 orders per day. " We can go even higher on peak days", Jio Platforms CEO Kiran Thomas revealed at the Facebook for Fuel India 2020 event. He said, "JioMart is empowering millions of kiranas and small merchants through the simple and secure platform of WhatsApp, and linking them to Reliance Retail's pan-India supply chain. We expect to grow manifold in future, and are optimistic about enabling new cohorts of users and making it easier for them to shop for daily essentials." "Customers are transacting seamlessly on JioMart and the conversational nature of the service enabled by WhatsApp has made people adapt to it intuitively," he added. Reliance also stated that it will continue t

Stock broker SMC Global files for IPO

F inancial services company SMC Global Securities has filed draft red herring prospectus with SEBI for public issue of 1,58,67,380 equity shares of face value of Rs 2 each. The issue comprises a fresh issue of 79,33,690 equity shares by the company and an offer for sale of 79,33,690 shares by Millennium India Acquisition Company Inc. As of September 30, 2012, "We service our broking clients through a network of 43 branches and 2,521 registered sub-brokers and authorized persons spread in more than 500 cities and towns. We have also established an office in Dubai for brokerage and trading activities in that region," the company said. SMC has reported a loss of Rs 0.42 crore and total revenues of Rs 292.24 crore in the year ended March 31, 2012. "The proceeds of the fresh issue shall be utilised for margin maintenance with stock exchanges; part repayment of term loan; investments into subsidiary, SMC Comtrade; and general corporate purposes," according to p

TCS merger with TCS e serve

The board of Tata Consultancy Services (TCS) in its meeting on 18 October 2012 has approved the composite scheme of arrangement between TCS, TCS e-Serve (e-Serve) and TCS e-Serve International (TEIL). The composite scheme of arrangement provides for merger of e-Serve into TCS and demerger of TEIL's special economic zone (SEZ) undertaking(s) to TCS. The appointed date proposed for this scheme is 01 April 2013. TCS holds 96.26% of the paid up equity share capital of e-Serve. TEIL is a wholly owned subsidiary of e-Serve. As per the terms of the scheme of arrangement, shareholders of e-Serve (other than TCS) will receive 13 equity shares of Re 1 each of TCS for every 4 equity shares of Rs 10 each of e-Serve held by them. The board has approved the scheme of merger of Computational Research Laboratories (CRL) and Retail FullServe (RFL) with TCS. The proposed appointed date for the merger of CRL is 01 October 2012 and for the merger of RFL is 01 April 2012. Computational Res

Abhishek Securities

Search This Blog