Business

IIE DIGITAL DESK : Reliance Industries Ltd. closed the fourth quarter of FY24 on a strong note, bolstered by a significant performance in its digital and retail ventures. The company reported a consolidated net profit of ₹21,243 crore, which reflects a growth of 0.1% compared to the same quarter last year. However, the highlight of this quarter’s results was the impressive double-digit growth in its retail and digital services segments, which provided a solid counterbalance to a more muted performance in its oil-to-chemicals (O2C) business.

Reliance Retail, a powerhouse in India's consumer space, reported a notable 11.7% year-on-year jump in net profit to ₹2,698 crore for the quarter. The company’s revenue grew nearly 10% to ₹67,610 crore, with EBITDA rising sharply by over 18% to ₹5,632 crore. These figures underscore the strong demand across its various consumer-facing formats and its successful expansion across multiple tiers of the Indian market.

One of the standout elements in the Q4 report was the performance of Reliance’s digital commerce platform, JioMart Digital. This platform recorded an astounding 5.5x growth over the same quarter last year, largely driven by soaring sales in mobile phones and large home appliances. The platform’s rapid scale-up was also enabled by the expansion of its merchant base by 20%, marking a significant milestone in its aim to serve as India’s preferred digital shopping destination.

Reliance Retail continued its aggressive store rollout strategy, opening 562 new outlets during the quarter and expanding its total retail space by 7.8 million square feet. This expansion helped drive a 24% increase in customer footfalls across all store formats, which reached a record 272 million in just three months. The company also continued to invest in its supply chain infrastructure, adding more than 1.7 million square feet of warehousing space to support its growing operations.

Each segment within Reliance Retail delivered solid results. The grocery business hit a record high, reporting a 66% year-on-year growth, driven by strong traction in smaller towns and rural areas. Consumer electronics also witnessed robust momentum, with a 15% growth, excluding devices, supported by promotional campaigns like "Digital India Sales." Meanwhile, the fashion and lifestyle segment benefited from a busy wedding and festival season, posting a 19% increase in revenue. Premium and luxury brands, another focus area for Reliance, surged by 35%, driven by new launches and exclusive partnerships.

Strategic initiatives further strengthened the company’s position during the quarter. Reliance acquired the popular kids and maternity-wear label Ed-a-Mamma and also secured rights to operate Superdry in India, Sri Lanka, and Bangladesh. In financial services, the launch of co-branded credit cards with SBI Card provided a new consumer touchpoint. In the beauty segment, the company launched 'Tira', its digital-first beauty platform, and opened a flagship store in Mumbai, signaling its intent to take on international players in this fast-growing space.

Reliance’s Q4 results underline its transformation from a predominantly energy-focused conglomerate into a consumer and digital powerhouse. Despite the drag from its traditional O2C segment, the company’s sharp focus on technology, customer engagement, and domestic consumption has paid off handsomely. As Reliance doubles down on its retail and digital bets, the strong performance in Q4 FY24 sets the stage for an even more ambitious expansion in FY25.