General merchandise and apparel growth key for DMart's margin gains

The retailer's revenues in Q2 were lower than estimates

The stock of Avenue Supermarts (DMart), was up 1.2 per cent in trade after its quarter two for the 2022-23 financial year (Q2FY23) update indicated a 36 per cent year-on-year (YoY) increase in revenues. The country’s largest listed retailer by market capitalisation posted revenues of Rs 10,384 crore. This was up 74 per cent as compared to pre-Covid-19 period (Q2FY20). Over a three-year period, growth has compounded annually, at 20 per cent.

Motilal Oswal Research, however, indicated that the standalone revenue growth was 6.4 per cent below its estimates. While overall revenue growth remained strong, calculated like-to-like growth in Q2FY23