DMart Q1FY24 Results: Ace investor Radhakishan Damani-backed Avenue Supermarts, which operates the retail chain DMart, announced its April-June quarter results for the current fiscal, reporting a consolidated net profit of 658.71 crore, up two percent from 642.89 crore in the year-ago period.
DMart reported an 18.2 percent YoY (year-on-year) rise in consolidated revenue from operations at 11,865.44 crores, compared to 10,038.07 crores in the corresponding period last year. The Basic Earnings per share (EPS) for the quarter under review stood at Rs.10.14, compared to Rs.9.93 in the year-ago period, according to a regulatory filing by the firm to the stock exchanges.
The operating profit, calculated as earnings before interest, tax, depreciation and amortization (EBITDA), rose 2.8 percent to 1036 crore, compared to 1008 crore reported in the same quarter last year. Meanwhile, margins came in at 8.9 percent versus 10.3 percent YoY.
D-Mart follows the 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.
‘’Overall gross margins are lower compared to the same period in the previous year, primarily due to lower sales contribution of apparel and general merchandise. However, general merchandise contribution is recovering and trending towards pre-pandemic levels. We opened three new stores during the quarter. Our total stores now stand at 327,” said Neville Noronha, CEO & Managing Director, Avenue Supermarts.
In the January-March quarter for the financial year 2022-23, Avenue Supermarts reported that its revenue from operations for the quarter ended March 2023, stood at 10,337 crore, logging a 20 percent jump from 8,606.09 crore revenue from operations reported in the corresponding quarter last fiscal. The company management had claimed that the total number of stores as on March 31, 2023, stood at 324.
