Radhakishan Damani-owned D-Mart’s Q3 profit jumps 24% on higher sales
Last Updated: 11th January 2022 - 03:09 pm
Mumbai-based Avenue Supermarts Ltd, which owns and runs retail chain D-Mart, has reported a 24% jump in its quarterly earnings as it added more stores to its network and expanding profit margins.
The company, owned by ace stock market investor Radhakishan Damani, said consolidated net profit for the quarter ended Dec. 31 climbed to Rs 553 crore from Rs 447 crore a year earlier. Profit margin widened to 6% from 5.9%
Consolidated revenue from operations rose 22% to Rs 9,218 crore from Rs 7,542 crore.
The company’s stock had hit an all-time high two month back and has corrected by a fifth since then. But the company still commands a hefty market value of Rs 3.06 trillion.
Avenue Supermarts added 17 stores during the third quarter. This takes the number of stores added in April-December 2021 to 29.
The company opened its first store in Mumbai in 2002. It now operates 263 stores across a dozen states.
D-Mart Q3: Other key highlights
1) EBITDA in Q3 rose to Rs 866 crore from Rs 689 crore in the corresponding quarter of last year.
2) EBITDA margin stood at 9.4%, compared with 9.1% in the same quarter last fiscal year.
3) Total revenue for April-December stood at Rs 22,190 crore, compared with Rs 16,731 crore a year earlier.
4) EBITDA for the nine-month period jumped to Rs 1,759 crore from Rs 1,130 crore.
5) Net Profit for the nine-month period rose to Rs 1,066 crore from Rs 686 crore.
D-Mart management commentary
Neville Noronha, CEO and Managing Director, Avenue Supermarts, said revenue in the DMart stores grew by 22% in this quarter from a year earlier while overall gross margins were marginally lower due to mix deterioration.
He also said that general merchandise and apparel business is consistently seeing relatively lesser sales contribution while essential items and FMCG were doing better.
“Inflation and lesser opportunities to go out are negatively impacting certain categories more than others. We are seeing higher inflation as an opportunity to make our buying more efficient, our assortment sharper and continue to keep our costs low,” said.
Noronha also expressed caution about the resurgence of Covid-19. “Considering the current Covid wave, our sales and footfalls will be dependent on local regulations. We continue to take all precautions to ensure every shopper, employee and partner is operating in a safe environment,” he said.
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