DMart posts sharpest rise in 5 quarters, margins trump D-Street estimates

Net profit margin in Q1 stood at 5.8 per cent, higher than the 5.5 per cent reported a year ago and ahead of the 4.0-4.8 per cent range seen in the last three quarters

Avenue Supermarts, which runs the DMart chain of stores in India, reported its sharpest rise in operating and net profit margins in five quarters, at the end of the June quarter (Q1FY20), beating Street estimates. 

Earnings before interest, tax, depreciation and amortisation (Ebitda) margins came in at 10.3 per cent, on the back of better operational efficiency despite growing concerns over pricing pressure and competitive intensity. 

A year ago, DMart had reported Ebitda margins of 9.3 per cent, which declined subsequently to hover between 7.5 per cent and 8.3 per cent in the last three quarters. Analysts had maintained this range for