Avenue Supermarts (DMart) rose 2.31% to Rs 4,032.95 after the company's consolidated net profit soared 574.14% to Rs 642.93 crore on 93.67% rise in revenue from operations to Rs 10,038 crore in Q1 FY23 over Q1 FY22.
On a consolidated basis, profit before tax stood at Rs 875.42 crore in Q1 FY23, a jump of 537.3% compared with Rs 137.36 crore in the corresponding quarter of last year.Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) in Q1 FY23 surged 350% to Rs 1,008 crore compared with Rs 224 crore in Q1 FY22. EBITDA margin stood at 10% in Q1 FY23 as against 4.3% in Q1 FY22.
D-Mart follows Everyday low cost - Everyday low price (EDLC-EDLP) strategy which aims at procuring goods at competitive prices, using operational and distribution efficiency and thereby delivering value for money to customers by selling at competitive prices. DMart opened 10 stores in Q1 FY23.
Commenting on the performance of the company, Neville Noronha, CEO & managing director of Avenue Supermarts, said, "We ended Q1 FY 2023 with growth across all key financial parameters. There has been a very good recovery of overall sales. However, this quarter's performance is not comparable to the same period last year due to the second wave of Covid-19 during that time.
"We cumulatively opened 110 stores over the last 3 financial years which never got an opportunity to operate in normal circumstances over the last 2 years. These are stores that are larger, better designed and have capacity to handle larger scale of revenue. These stores have done extremely well in this quarter. This is also the first full quarter of zero disruption from Covid-19 pandemic. Q1 like Q3 is a good revenue as well as profit enhancing period due to back to school/college season and the onset of the monsoons."
He added, "General Merchandise and Apparel categories saw relatively better traction than the previous quarter but still has some overhang of the Covid-19 led disruptions and acute inflationary impact. Our discretionary contribution mix of this quarter is yet to reach the pre-pandemic levels but is getting better. High inflation over the last two years hides the possible stress in volume growth for discretionary categories of mass consumption. Value growth through positive volume growth of discretionary products in relatively older stores is the best reflection of the strength of the DMart business, competitive impact and the local economy. We have made good progress in this area during the quarter. We will need another quarter of uninterrupted operations to understand this better."
Further he said, "DMart Ready continues to deepen its presence across 12 cities in India. We are doing more of the same and continue to focus on the larger cities. Smaller towns are pilots and we are constantly learning from the feedback we get from our customers in these towns."
Avenue Supermarts 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 31 March 2022, the company had 284 operating stores with retail business area of 11.5 million sq. ft across Maharashtra, Gujarat, Daman, Andhra Pradesh, Karnataka, Telangana, Tamil Nadu, Madhya Pradesh, Rajasthan, NCR, Chhattisgarh and Punjab.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
