DMart Q3 results: Standalone net profit rises 24.6% to Rs 586 cr

Standalone revenue rose 22% to Rs 9,065 crore

Avenue Supermarts (DMart) on Saturday reported 24.6% rise in standalone net profit at Rs 586 crore for the quarter ending December 31, 2021. The Radhakishan Damani-promoted retail chain reported standalone net profit of Rs 470 crore a year ago.

Standalone revenue from operations rose 22% to Rs 9,065 crore as againt Rs 7,432 crore a year ago.

On Friday, Avenue Supermarts' scrip on BSE closed 0.5% higher at R 4,730.

Neville Noronha, CEO & Managing Director, Avenue Supermarts Limited, said: “Revenue in the DMart stores grew by 22.0% in this quarter over the corresponding quarter of last year. Overall gross margins are marginally lower due to mix deterioration. General merchandise and apparel business is consistently seeing relatively lesser sales contribution while essentials and FMCG is 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.
 

"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."

The company said in a stock exchange filing that it added 17 stores in Q3FY22. 

The total expenses also increased 21.72% to Rs 8,493.55 crore in Q3 FY 2021-22, compared to Rs 6,977.88 crore in the year-ago quarter.

According to the company, for the last nine months of FY22, its total revenue stood at Rs 22,190 crore, compared to Rs 16,731 crore in the year-ago period.

Net Profit stood at Rs 1,066 crore for 9M FY22, as compared to Rs 686 crore for 9M FY21. PAT margin stood at 4.8% in 9M FY22 as compared to 4.1% in 9M FY21, said Avenue Supermarts in a post earning statement.