Reliance Retail outperforms, aided by telecom, fuel sales

ET Intelligence Group: While consumer discretionary companies have been showing pressure on their top lines over the past two quarters, Reliance Retail, a subsidiary of Reliance Industries (RIL), has been an outlier.

The company said its revenue by 80 per cent and operating profit by 98 per cent on an annualised basis during the past 13 quarters. In the June 2019 quarter, the revenue and operating profit growth was 47 per cent and 66 per cent, respectively.

Nearly one-third of the retail revenue originates from connectivity, which includes sales of recharge coupons of Reliance Jio, the conglomerate’s telecom arm, and about 10 per cent from oil retail outlets. Revenue from telecom recharge operations rose by 51 per cent and that from the fuel retail increased by 19 per cent year-on-year in the June quarter.