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Avenue Supermarts Ltd. (ASL), the parent company behind the famous retail chain D-Mart, announced its Q1 results wherein it disclosed a staggering six-fold growth in profits.
D-Mart is a one-stop supermarket chain that offers a wide range of home care and personal products such as toiletries, food, beauty, garments, etc. It was started by Radhakishan Damani in 2002 with its first store in Powai, Maharashtra. Today, the company has its presence in 294 locations across 11 states and 1 Union Territory.
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The company's standalone net profit rose 491% YoY from Rs 115.13 crores last year to Rs 679.64 crores this year. Moreover, profits reported a 45.73% growth on a sequential basis. Revenues surged 94.9% YoY and 13.95% QoQ to Rs 9,806.89 crores. Standalone EBITDA grew 4.5 times to Rs 1,008 crores as the EBITDA margin came in at 10.3%.
On a consolidated basis, revenues came in at Rs 10,038 crores while profit for the quarter was Rs 643 crores against Rs 95 crores last year. The consolidated EBITDA margin was 10%, more than 2 times from last year. Total expenses grew 81% to Rs 9,191.79 crores.
The company opened 10 new stores during the quarter as its e-commerce business- "DMart Ready" improved its position in 12 Indian cities in the quarter. Apparel and General merchandise saw good traction during the quarter but still suffered from the aftereffects of Covid-19-led disruptions and inflationary pressures.
“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. We ended Q1FY23 with growth across all key financial parameters. There has been a very good recovery in 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,” said Neville Noronha, CEO & MD of ASL.
The company's stock has grown 16.3% in the past week as it closed at Rs 3,941.70 per share on Friday.
Article by Aman Agarwal.
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