Login & Signup

  • PreIPO
  • Startup Fund Raising
  • Valuations
  • Equity Restructing

  • Investments
  • Mutual Funds
  • Demat Account
  • Bonds/NCD
  • Insurance
  • Life Insurance
  • Health Insurance
  • Car Insurance
  • Corporates & Business
  • Property Insurance
  • Group Health Insurance
  • Marine Insurance
K

RATING

RECOMMENDATION

Buy

  • Portfolio

  • Basket

  • Watchlist

  • More

RATING

RECOMMENDATION

Buy

Business Type

Dominant Leader

  • Reliance Retail Growth

Get detailed information about the Reliance Retail Pre IPO Unlisted shares. In this research report, you will get to know about Reliance Retail Key Ratios data. In addition, get the Complete details about the Net Profit Growth, Revenue Growth, Reliance Retail Peers and Book Value Growth. 

Reliance Retail Revenue Growth

Growth in %

  • -5.24%

    1 Year

  • 9.08%

    2 Year

The outbreak of COVID-19 pandemic and the ensuing lockdown and operating restrictions imposed across the country affected business operations during the year. Due to which revenues were lower in FY21 as compared to FY20.

Reliance Retail delivered revenue of Rs 1,55,209 crore against Rs 1,60,965 crore for the previous year. The revenues were impacted on account of store closures (80% stores operational), lower footfalls (65% of last year) and operational disruptions through the year.

Reliance Retail Net Profit Growth(PAT)

Growth in %

  • -18.09%

    1 Year

  • 18.88%

    2 Year

The gradual decrease in profit after tax is primarily because in FY21, only 80% of stores were operational due to COVID-19, lockdown and operating restrictions. The revenue fell by 5% when compared with the previous year. The company had increased their employee benefit expense by 32% as a measure for COVID relief and a 30% increase in depreciation, which was a result of the net addition of intangible assets to increase its operating efficiency as with new commerce initiative, Reliance Retail is linking producers with small merchants and consumers to create a win-win partnership model. The new commerce footprint is being expanded from 33 cities at present, with investments in supply chain and technology, to make Reliance Retail a trusted partner for millions of merchants across the country, reducing the net profit of the company altogether for FY21.

Reliance Retail EPS Growth

Growth in %

  • -18.10%

    1 Year

  • 18.82%

    2 Year

The outbreak of COVID-19 pandemic and the ensuing lockdown and operating restrictions imposed across the country affected business operations during the year due to which revenues were lower in FY21 as compared to FY20 although a steady decline in the expenses have been the positive contributor towards the net Income but wasn't enough to compensate for the decline in revenue, hence the EPS growth declined in FY21. 

  • Reliance Retail Book Value Growth

Growth in %

  • 41.41%

    1 Year

  • 85.88%

    2 Year

In FY21, the company had grown its equity by 39% from the previous year, which was a result of growth in reserves and surplus by 300%, retained earnings by 40%, and other equity by 24% compared with FY20. The primary reason for the increase in the equity is that the company had raised funds by giving 8.5% optionally convertible preference shares to raise Rs 2,400 Cr, and the rise in the retained earnings of the company, in absolute value of Rs 4,598 Cr, increasing the overall book value of the company by Rs 7,193 Cr.

Reliance Retail EBITDA Growth

Growth in %

  • -11.60%

    1 Year

  • 17.03%

    2 Year

A decrease in sales (organised retail by 18% and petro-retail products by 61%) has resulted in a decrease in EBITDA . The company had paid more to their employees as COVID relief but the total expenses for FY21 had fallen by 5% from the previous year FY20. For FY21, the company's revenue per unit of spending has grown. This indicates that, in comparison to the previous year, the company was less efficient in generating income with its expenses resulted in further decline of EBITDA. The Company delivered a consolidated EBITDA of  Rs 8,373 crore for FY21 against Rs 9,518 crore for the previous year, driven by the gradual rebound of revenue streams.

Reliance Retail Operating Profit Growth

Growth in %

  • -17.18%

    1 Year

  • 12.12%

    2 Year

The company's EBITDA decreased by 12%, but its EBIT decreased by 17%, owing mostly to a 30% increase in depreciation. The corporation had grown its intangible assets, resulting in a greater depreciation amount. Intangible asset depreciation was Rs 245 crore in FY20, compared to Rs 458 crore in FY21.

Reliance Retail Asset Growth

Growth in %

  • 39.57%

    1 Year

  • 20.01%

    2 Year

The gradual increase in the asset base is primarily due to the increase in the capital-work-in-progress, for implementation of new business initiatives (such as the launch of physical store expansion and opened 1432 stores across Digital and Jio stores, investment in software development, etc. to support the expansion plans. Total store count now stood at 12178 stores, covering 31.9 million sq. ft. at the end of the year.

Reliance Retail Cash Flow from Operations

Growth in %

  • -95.16%

    1 Year

  • -31.38%

    2 Year

Changes in the working capital have reduced the cash flow from operation. Receivables and inventories have gone up from the previous year because of very weak sales and excess inventory. It may indicate a problem with the goods being offered for sale and on a credit basis. 

  • Reliance Retail Solvency Ratios

Reliance Retail solvency has improved from the previous year as they have been able to raise the capital effectively increasing the equity as well as the debt to gear themselves into pre-covid level and hyper technology led growth as part of its expansionary strategy. 

Reliance Retail D/E Ratio

The gradual decrease in the debt/equity ratio of the company is due to retain earnings in the current year and the issuance of OCPS against call money which has resultantly led to a rise in shareholder’s equity although there has been an increase in the debt amount but rise in shareholder's equity led to fall in debt to equity ratio.

Reliance Retail Current Ratio

The marginal incline in the current ratio is primarily because of the simultaneous increase in current liabilities as well as current assets because of advances given to the vendors using short term borrowings.

Reliance Retail Quick Ratio

The marginal incline in the quick ratio is primarily because of the simultaneous increase in current liabilities as well as current assets because of advances given to the vendors using short term borrowings. Although investment of the company had almost doubled itself but loan and advances are bigger contributor towards the current assets.

Reliance Retail Interest Coverage Ratio

The decrease in the interest coverage ratios is because of the company’s decreased earnings (decreased sales in organized and petro segments) and due to which it was unable to pay off of its interest expenses.

  • Reliance Retail Operating Efficiency

Reliance Retail Operating Profit EBIT Margin(OPM)

The gradual decrease in EBIT is based on the decreasing penetration of the organized retail market in the Indian economy, as the revenue from the same segment has decreased which provides a fall to the margins as well.

Reliance Retail Profit Before Tax Margin (PBT Margin)

Reliance Retail Profit After Tax Margin (PAT Margin)

The  decrease in Profit after tax margin shows the gradual decrease in revenues and the sales growth of the company. The fall in sales growth has increased in the segments of fashion & lifestyle (Reliance Trendz) and grocery (Reliance Fresh & Reliance Smart).

  • Reliance Retail Profitablity Ratio

Reliance Retail Return on Equity(RoE)

The gradual decrease in ROE is primarily because of the decrease in the marginal earnings of the company from the previous year. Company has raised capital through issuance of OCPS against call money which is to improve their return on the equity which also decreases the return on equity.

Reliance Retail Return on Capital Employed(RoCE)

The gradual decrease in ROCE over the past year is because of the decrease in earnings of the company. The capital employed has increased because of an increase in the company's asset base.

Reliance Retail Return to Assets (RoA)

The gradual decrease in ROA is primarily due to the fall in income due to pandemic and returns that happened based on the significant investment made in the asset base (such as the launch of physical store expansion and opened 605 stores across Digital and Jio stores, investment in software development, etc). to support the expansion plans. The investment is expected to yield higher returns in the long-term future.

  • Reliance Retail Valuation Ratios

Reliance Retail Earning Yield