Avenue Supermarts hits record high after Q2 PAT soars 110% YoY

Avenue Supermarts, the operator of DMart, jumped 4.93% to Rs 5,586.20 after the company posted a 110% jump in consolidated net profit to Rs 418 crore on a 46.8% increase in revenue from operations to Rs 7,789 crore in Q2 FY22 over Q2 FY21.

The company's consolidated profit before tax soared 108.9% to Rs 567.7 crore in Q2 FY22 from Rs 271.68 crore posted in Q2 FY21. Profit after tax margin stood at 5.3% in Q2 FY22 as compared to 3.7% in Q2 FY21

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) in Q2FY22 stood at Rs 669 crore, as compared to Rs 330 crore in the corresponding quarter of last year, registering a rise of 102.7%. EBITDA margin improved to 8.6% in Q2FY22 as compared to 6.2% in Q2FY21.

 

D-Mart follows Everyday low cost - Everyday low price (EDLC-EDLP) strategy which aims at procuring goods at competitive price, using operational and distribution efficiency and thereby delivering value for money to customers by selling at competitive prices. The company announced that it opened 8 stores in Q2FY22.

Commenting on the performance of the company, Neville Noronha, CEO & MD of Avenue Supermarts said, Revenue in the DMart stores grew by 46.6% over the corresponding quarter of last year. Two years and older DMart stores grew by 23.7% in the month of September 2021 as compared to September 2020. We have 187 stores that are 2 years or older. We have done a soft launch of DMart Ready in the cities of Surat and Vadodara.

Shares of Avenue Supermarts hit a record high of Rs 5,899.90 in early trade today.

Avenue Supermarts Limited is a Mumbai-based company, which owns and operates D-Mart stores. D-Mart is a national supermarket chain that offers customers a range of home and personal products under one roof. As of 30 September 2021, the company had 246 stores with Retail Business Area of 9.44 million sq. ft. across Maharashtra, Gujarat, Daman, Andhra Pradesh, Karnataka, Telangana, Tamil Nadu, Madhya Pradesh, Rajasthan, NCR, Chhattisgarh and Punjab.

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