Reliance Retail delivered an EBITDA of Rs17,928 crore and a net profit of Rs 9,181 crore
New Delhi: Reliance Retail will become Reliance Industries Ltd’s (RIL) fastest-growing business in revenues and EBITDA (earnings before interest, taxes, depreciation and amortization) in the coming decades, chairman Mukesh Ambani said while addressing the company’s shareholders on Monday.
“I am confident that as India grows from a $2,500 per-capita economy to a $10,000 per-capita economy, Reliance Retail will be our fastest growing business in revenues and EBITDA,” Ambani said at RIL’s 46th annual general meeting (AGM).
While Ambani did not give a timeframe, in a virtual chat at the Asia Economic Dialogue last year, he said that India will reach $10,000 per capita in the next 15-20 years.
While speaking about the performance of Reliance Retail, he shared that the vertical had posted an annual revenue of Rs 2,60,364 crore in the financial year (FY) 2023, registering a year-on-year growth of 30%. “We delivered an EBITDA of Rs17,928 crore and a net profit of Rs 9,181 crore,” the Chairman said.
Reliance Retail is the only Indian retailer in the global Top 100, and one of the fastest-growing retailers in the world.
Over the past few years, it has attracted investments from large and reputable global investment firms and sovereign wealth funds owing to its rock-solid fundamentals and compelling value proposition. I am delighted to welcome yet another world-renowned sovereign wealth fund, Qatar Investment Authority, as a valued investor in Reliance Retail, with an investment of $1 billion for a 1% equity stake. This investment values Reliance Retail at a pre-money equity value of Rs 8,28,000 crore.
Putting the exponential rise of Reliance Retail on the global map, Ambani shared that in September 2020, the valuation of Reliance’s Retail business stood at Rs4,28,000 crore. In less than three years, the valuation of Retail has almost doubled, despite the Covid-19 pandemic. “Based on this valuation, Reliance Retail, had it been listed, would have ranked among the Top 4 companies in India and Top 10 retailers globally,” Ambani said.
Elaborating on the company’s growth story, Isha Ambani, Director of Reliance Retail and Jio Platforms said that FY23 has been a landmark for the retail business with Reliance Retail crossing the milestone of 100 crore transactions, up 42% YoY.
“Our stores received more than 78 crore footfalls during the year. The number of registered customers grew to nearly 25 crore. We are delivering value to over 30% of India’s addressable population,” she said at the AGM.
