The Avenue Supermarts stock was down one per cent after its June quarter results disappointed the street. India’s largest retailer by market capitalisation slipped on the gross margins front which hit its all time lows. The metric, at 12.36 per cent, was down 129 basis points YoY and more than 200 bps lower as compared to the preceding quarter. Most analysts had pegged the number closer to 14 per cent.
The margins were lower due to the restrictions on sale of non-essential goods which fetch higher margins than the staples segment. Analysts at Jefferies say the multi-year low gross margins