DMart Q1 results: Net profit jumps 132% to Rs 115 cr; revenue rises 31%

Basic Earnings per share for Q1FY22 stood at Rs 1.78, as compared to Rs 0.77 for Q1FY21

DMart operator Avenue Supermarts on Saturday reported 132% jump in standalone net profit at Rs 115 crore for the June quarter. It was Rs 50 crore in the year-ago period. 

Total revenue rose 31% to Rs 5,032 crore as compared to Rs 3,833 crore in June 2020. 

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) in Q1FY22 stood at Rs 221 crore, as compared to Rs 109 crore in the corresponding quarter of last year. EBITDA margin stood at 4.4% in Q1FY22 as compared to 2.8% in Q1FY21. 

Basic Earnings per share (EPS) for Q1FY22 stood at Rs 1.78, as compared to Rs 0.77 for Q1FY21. 

"Revenues have grown by 31 per cent over the corresponding quarter of last year. This is because the lockdown periods were at different times in different regions during the quarter. Some cities announced early lockdowns and continue to have stringent measures in place even now while some cities eased the restrictions within 3-4 weeks after their early lockdown,” the company said.

Despite lesser hours of operations during this lockdown, it had more customer footfalls than in the same period last year and this has translated into higher sales, it said.

One of the key reasons for this is even though restrictions on operations were more severe, personal mobility was relatively less stringent than last time's, it said.

"Q1 FY 2021-22 saw a much stronger second wave of COVID-19 restrictions. We lost significantly more days or had a higher restriction on a number of hours of store operations compared to the same period last year," Avenue Supermarts CEO & Managing Director Neville Noronha said.

According to the company, now lockdown measures are gradually reducing across multiple cities.

"Across these multiple periods of lockdowns, we have come to realize that a store needs at least 45 days of unhindered operational time to get back to pre-COVID sales momentum. We have not seen any significant impact on our supply chain during the quarter,” it said.

The inventory is gradually moving towards normal levels and construction activity has also commenced at all sites, it added.

On Friday, the company's scrip on NSE closed trading 0.27% lower at Rs 3,380.