Avenue Supermarts dips post Q4 results on profit booking

Since listing on March 21, the stock rallied 26% against 1.3% rise in Sensex, till Friday, May 5

Avenue Supermarts, which runs the D-Mart value retail chain, was trading 3.5% lower at Rs 780 on BSE, in an otherwise firm market even after the company reported 47% growth in net profit at Rs 97 crore for the quarter ended March 2017 (Q4FY17). The company had profit of Rs 66 crore in the same quarter year ago.

Total revenue during the quarter increased 40.5% at Rs 3,120 crore over the previous year quarter. Earnings before interest, tax, depreciation and amortization (EBITDA) margin improved from 6.93% in Q4FY16 to 6.95% in Q4FY17.

The company said Like for Like (LFL) growth has been 21.2% in FY17 vis-à-vis 21.5% in FY16. LFL means the growth in revenue from sale of same stores which have been operational for at least 24 months at the end of fiscal year.

For the FY17, Avenue Supermarts has reported 38.6% YoY growth in total revenue of Rs 11,912 crore, and net profit growth of 51.6% at Rs 483 crore over FY16.

The stock hit an all-time high of Rs 825 on BSE in early morning trade today, has appreciated by 26% since its listing on March 21, 2017. On comparison, the benchmark S&P BSE Sensex was 1.3% during the period till yesterday. The stock had gained 176% against its initial public offer (IPO) price of Rs 299 per share.