RIL also experienced a substantial increase in its depreciation costs, which rose by 31.7 per cent YoY to ₹11,775 crore due to an expanded asset base across all businesses. Similarly, finance costs saw a steep hike of 46 per cent YoY, totalling ₹5,837 crore, mainly due to higher interest rates and loan balances, the company said in a press release.

In its polyester business, RIL reported a decrease in the polyester chain delta YoY due to lower margins in downstream polyesters, weak demand in China, and a slowdown in polyethylene terephthalate (PET) export markets. The polyester chain margin stood at $574/MT during Q1 FY24, compared to $593/MT in Q1 FY23 and $516/MT in Q4 FY23. However, the Indian market sentiments were stable, and domestic polyester demand saw a 5 per cent YoY increase, thanks to an improvement in PET and polyester filament yarn (PFY) demand.

Mukesh D Ambani, chairman and managing director, RIL, said: “Reliance’s strong operating and financial performance this quarter demonstrates the resilience of our diversified portfolio of businesses that cater to demand across industrial and consumer segments.

“Retail business delivered robust growth, with fast-paced store additions and steady growth in footfalls. The contribution of digital and new commerce initiatives is scaling up, delivering value to consumers and providing synergistic benefits to merchant partners.”

Reliance retail delivered revenue of ₹69,948 crore, up by 19.5 per cent YoY, driven by growth in fashion and lifestyle. Notably, it marked an impressive profit milestone, with EBITDA at ₹5,139 crore, up by 33.9 per cent YoY, and EBITDA before investment income was at ₹4,896 crore, up by 25.6 per cent YoY. The EBITDA margin from operations on net sales was at 7.9 per cent, up by 30 bps YoY, largely driven by efficiencies. The business maintained its store opening trajectory with 555 new store openings.

Reliance’s lingerie business saw steady performance with Amante and Clovia outperforming. The business strengthened product portfolio through several new launches with athleisure, ribbed crop tops, Disney sleep, and loungewear amongst notable ones.

Reliance's online fashion portal, Ajio, also delivered a strong performance for the quarter, showing sustained improvement across operational metrics and adding 2 million new customers during the period. This contributed to the overall retail business revenue growth of 15 per cent YoY, driven by an increase in store traffic and average bill value.

“I am delighted to share that our financial performance in the quarter has been resilient and aligned with our business goals. The sustained growth across consumption baskets has further consolidated our position as a market leader. We continue to innovate and invest in our stores and digital platforms to make shopping more engaging for our customers," said Isha M Ambani, executive director, Reliance Retail Ventures Limited.

Fibre2Fashion News Desk (DP)