Avenue Supermarts Q1 net profit surges six fold to Rs 680 crore

Mumbai (Maharashtra) [India], July 9 (ANI): Avenue Supermarts Limited, which owns and operates the hypermarkets chain D-Mart, on Saturday reported a standalone net profit of Rs 680 crore for the first quarter of the current financial year as compared to Rs 115 crore recorded in the same period of last year, registering almost six-fold jump.
The company's total revenue surged by 94.9 per cent year-on-year to Rs 9,807 crore for the quarter ended June 30, 2022, as compared to Rs 5,032 crore recorded in the same period last year.
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) in the first quarter of 2022-23 stood at Rs 1,008 crore, as compared to Rs 221 crore in the corresponding quarter of last year.
EBITDA margin stood at 10.3 per cent in the first quarter of 2022-23 as compared to 4.4 per cent in April-June 2021 period.
The company's profit after tax (PAT) margin stood at 6.9 per cent in Q1 FY23 as compared to 2.3 per cent in Q1 FY22. Basic Earnings per share (EPS) for Q1 FY23 stood at Rs 10.49, as compared to Rs 1.78 for Q1 FY22.
On a consolidated basis, the company's total revenue for the quarter ended June 30, 2022 stood at Rs 10,038 crore, as compared to Rs 5,183 crore in the same period last year.
The company's consolidated earnings before Interest, Tax, Depreciation and Amortization (EBITDA) in Q1 FY23 stood at Rs 1,008 crore, as compared to Rs 224 crore in the corresponding quarter of last year. EBITDA margin stood at 10.0 per cent in Q1 FY23 as compared to 4.3 per cent in Q1 FY22.
Commenting on the performance of the company Neville Noronha, CEO & Managing Director, Avenue Supermarts Limited, 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 the capacity to handle large-scale of revenue. These stores have done extremely well in this quarter, Noronha said.
This is also the first full quarter of zero disruption from the 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," Avenue Supermarts Limited, a Mumbai-based company, which owns and operates D-Mart stores, said in a statement.
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, Noronha said in the statement. (ANI)