Avenue Supermarts net up 73 per cent in Q4

Avenue Supermarts, the operator of D-Mart stores, on Saturday said its net profit grew 72.9 per cent to Rs 1.67 billion for the quarter ended March 2018, from Rs 0.97 billion in the corresponding period of the previous financial year.

Total revenue for the fourth quarter of FY18 stood at Rs 38.10 billion, compared to Rs 31.11 billion in the same period a year ago. Its earnings before interest, taxes, depreciation and amortisation (EBITDA) margin improved from 6.7 per cent in the fourth quarter of 2016-17 to 7.7 per cent in Q4 of 2017-18, the company said.

The company’s total revenue for the financial year 2017-18 stood at Rs 150.09 billion, compared to Rs 118.81 billion for 2016-17. The company’s EBITDA margin improved from 8.1 per cent in FY17 to 8.9 per cent in FY18. For FY18 Avenue’s profit grew 62.6 per cent to Rs 7.85 bilion, compared to Rs 4.83 billion for last year.

The company added 14 stores in the fourth quarter of financial year 2017-18.

Neville Noronha, chief executive and managing director, Avenue Supermarts, said, “Deflation in staples, tax rates not being comparable, store addition not in line with expectation and base effect of demonetisation made March 2018 revenue a little tepid. Grooming talent and store addition shall continue to remain two main challenges, as well as focus areas.”

He said the company’s e-commerce model, D-Mart Ready, is still running a pilot in Mumbai.

On the Flipkart-Walmart deal, Noronha said the country has a large retail market and multiple retailers can operate.