Reliance Retail Limited Unlisted Shares
RELIANCE RETAIL LIMITED
Reliance Retail Limited is a daughter company of Reliance Industries Limited. Founded in 2006, it’s the largest retailer in India in terms of revenue. Mukesh Ambani is the Founder of Reliance Retail and V Subramaniam is CEO. Its retail outlets offer apparel and footwear, foods, groceries, lifestyle and home improvement products, electronic goods, and farm implements and inputs. Its target on consumer goods, consumer durables, energy, travel services, Internet, entertainment and leisure, health and well-being products with educational products and services. Reliance Retail Limited had a total of 7,573 stores in August 2019 in India with an area of over 17.7 million square feet across 750 cities, with yearly revenue of over ₹690 billion ($10 bn US).
Reliance Retail Limited. CIN: U01100MH1999PLC120563.
Registered Office: 3rd Floor, Court House, Lokmanya Tilak Marg, Dhobi Talao, Mumbai-400 002.
(i) Reliance Retail is the retail initiative of the Reliance group and is central to consumer-facing businesses. It has in a short time forged strong and enduring bonds with millions of consumers by providing them an unlimited choice, outstanding value proposition, superior quality and unmatched experience across all its stores.
(ii) Reliance Retail has adopted a multi-prong strategy and operates a chain of neighborhood stores, supermarkets, wholesale cash & carry stores, specialty stores, and online stores and has democratized access to a variety of products and services across diverse segments for Indian consumers.
(iii) Serving the food and grocery category Reliance Retail operates Reliance Fresh, Reliance Smart and Reliance Market stores.
In the consumer electronics category Reliance Retail operates Reliance Digital, Reliance Digital Express Mini stores, and Jio stores,
In fashion & lifestyle category it operates Reliance Trends, Trends Women, Project Eve, Reliance Footprint, Reliance Jewels and AJIO.com in addition to a large number of partner brand stores across the country.
(iv) The operating model is based on customer-centricity while leveraging common centers of excellence in technology, business processes, and supply chain. More importantly, it has built a strong and unwavering foundation through its extraordinary people. The nationwide network of retail stores offers a world-class shopping environment and unmatched customer experience.
(v) Reliance Retail has emerged as the partner of choice for international brands and has established exclusive partnerships with many revered international brands such as Diesel, Superdry, Hamleys, Ermenegildo Zegna, Marks and Spencer, Paul & Shark, Thomas Pink, Kenneth Cole, Brooks Brothers, Steve Madden, Payless Shoesource, Grand Vision and many more.
(vi) Reliance Retail reported a turnover of Rs. 1,30,566 crore for the financial year 2018-19. As on 31st Mar 2019, Reliance Retail operates 10,415 stores across 6,600+ cities with a retail area of over 22 million sq.ft.
(viii) Reliance Retail Ventures Limited, a subsidiary of Reliance Industries Limited is the holding company of Reliance Retail Limited which operates the retail business.
Reliance Retail Business Performance Report
Reliance Retail Limited Unlisted Shares Details:
| Total Available Shares: | 100 |
| Face Value: | ₹ 10 Per Equity Share |
| ISIN: | INE742O01010 |
| Lot Size: | 100 Shares |
| Current Unlisted Share Price: | ₹ 3100 Per Equity Share |
Financial Results
The Company’s financial performance (standalone) for the financial year ended March 31, 2021 is summarized below:
(`crore)
| Particulars | 2020-21 | 2019-20 |
| Revenue from operations | 1,49,924.89 | 1,46,724.25 |
| Other Income | 239.08 | 260.35 |
| Profit before Interest, Depreciation and Tax | 8,322.17 | 9,399.30 |
| Less: Interest | 693.03 | 867.03 |
| Depreciation | 1,447.58 | 1,108.85 |
| Profit before tax | 6,181.56 | 7,423.42 |
| Less: Current tax | 1,585.15 | 998.28 |
| Deferred tax | 9.55 | 885.35 |
| Profit for the year | 4,586.86 | 5,539.79 |
| Add: Other Comprehensive Income | 1.37 | (12.90) |
| Total Comprehensive Income of the year | 4,588.23 | 5,526.89 |
| Add: Balance in Profit & Loss Account | 11,358.45 | 5,831.56 |
| Less: Appropriation | – | – |
| Closing Balance (including other comprehensive income) | 15,946.68 | 11,358.45 |
Promoters And Management:
Reliance Retail Ventures Limited ( Holding Company) holds 99.95% shares in Reliance Retail.
Financials of Reliance Retail Limited Unlisted Shares:
Figures in Crores
| PARTICULARS | AS AT 31 MARCH 2021 | AS AT 31 MARCH 2020 |
| Equity share capital | 4,990.42 | 4,990.40 |
| Total Equity | 25,464.57 | 18,270.98 |
| Earnings per equity share | 4.93 | 8.88 |
BUSINESS OVERVIEW
Reliance Retail was founded with a view to revolutionise retail in India. Today, it is the largest, fastest growing and most profitable retail company in India with diversified omni-channel presence through integrated store concepts and digital commerce platforms. It is the only Indian retailer to feature in the list of ‘Global Powers of Retailing’.
As a market leader, Reliance Retail caters to five key consumption baskets – 1) Consumer Electronics, 2) Fashion & Lifestyle, 3) Grocery, 4) Pharma Retail and 5) Connectivity.
COVID-19 PANDEMIC
Considering the Covid-19 pandemic, the Ministry of Corporate Affairs (“MCA”) has, vide its circular dated May 5, 2020 read together with circulars dated April 8, 2020, April 13, 2020 and January 13, 2021 (collectively referred to as “MCA Circulars”) permitted convening the Annual General Meeting (“AGM” / “Meeting”) through Video Conferencing (“VC”) or Other Audio Visual Means (“OAVM”), without physical presence of the members at a common venue. In accordance with the MCA Circulars and the provisions of the Companies Act, 2013 (“the Act”), the AGM of the Company is being held through VC / OAVM. The deemed venue for the AGM shall be the Registered Office of the Company.
Analysis of FY19-20 Results
- Reliance Retail has shown revenue growth of 28% in FY19-20 as compared to last year.
- The EBITDA has gone up from 6064 Crores last year to 9405 Crores in FY19-20. Excellent growth in EBITDA.
- PAT is up by 75% in FY19-20 as compared to last year.
- Reliance Retail has reduced the debt from 12800 Crores last year to 4665 Crores in FY19-20. D/E = 0.25 (comfortable).
- Current Ratio = 0.92. Anything below one is generally not a good sign.
Valuation of Reliance Retail:
(i) Mcap – 13 Lakh Crores (at CMP of 2600).
(ii) EV – 13.14 Lakh Crores
(iii) EBITDA – 8312 Crores (Based on FY21 Financials)
(iv) EV/EBITDA – 158 (v) Mcap/Revenue – 10x
Peer Comparison:
| Avenue Super Mart Snapshot (Figures in Crores) | ||||||||
| Year | Revenue | EBITDA | OPM | PAT | NPM | Equity | EPS | |
| 2015 | 6,457 | 477 | 7.40% | 211 | 3.30% | 561 | 4 | |
| 2016 | 8,601 | 682 | 7.90% | 320 | 3.70% | 561 | 6 | |
| 2017 | 11,926 | 1011 | 8.50% | 478 | 4.00% | 624 | 8 | |
| 2018 | 15,102 | 1423 | 9.40% | 806 | 5.30% | 624 | 13 | |
| 2019 | 20,052 | 1682 | 8.40% | 902 | 4.50% | 624 | 14 | |
| 2020 | 24,930 | 2189 | 8.70% | 1300 | 5.21% | 647 | 20 | |
| 2021 | 24143 | 1855 | 7% | 1100 | 4.55% | 648 | 17 | |
Valuation of Avenue Super Mart:
- Reliance Retail Limited Annual Report 2020-21
- Reliance Retail Limited Annual Report 2019-20
- Reliance Retail Limited Annual Report 2018-19
- Reliance Retail Limited Annual Report 2017-18
- Reliance Retail Limited Annual Report 2016-17
- Reliance Retail Limited Annual Report 2015-16
- Reliance Retail Limited Annual Report 2014-15
