Avenue Supermarts Q1 PAT soars 137% YoY to Rs 95 cr

On a consolidated basis, Avenue Supermarts posted a 137.9% jump in net profit to Rs 95.36 crore on 33.5% rise in net sales to Rs 5,183.12 crore in Q1 FY22 over Q1 FY21.

Profit before tax soared 133.7% to Rs 137.36 crore in Q1 FY22 from Rs 58.77 crore posted in Q1 FY21. EBITDA in Q1 FY22 stood at Rs 224 crore, as compared to Rs 112 crore in the corresponding quarter of last year. EBITDA margin stood at 4.3% in Q1 FY22 as compared to 2.9% in Q1 FY21.

D-Mart follows Everyday low cost - Everyday low price (EDLC-EDLP) strategy which aims at procuring goods at competitive price, using operational and distribution efficiency and thereby delivering value for money to customers by selling at competitive prices.

Commenting on the performance of the company, Neville Noronha, CEO & MD of Avenue Supermarts said: Q1 FY 2021-22 saw a much stronger second wave of Covid-19 restrictions. We lost significantly more days or had higher restriction on number of hours of store operations compared to the same period last year.

He further said, Revenues have grown by 31% over the corresponding quarter of last year. This is because the lockdown periods were at different times in different regions during the quarter. Some cities announced early lockdowns and continue to have stringent measures in place even now while some cities eased the restrictions within 3-4 weeks after their early lockdown. There were also cities which announced lockdowns much later and are now in the process of relaxing them. Despite lesser hours of operations this time, we had more customer footfalls than in the same period last year and this has translated into higher sales. One of the key reasons for this is that even though restrictions on operations were more severe, personal mobility was relatively less stringent than last time. Additionally, we also had 22 new stores that were opened post Q1 FY 2020-21. Lockdown measures are now gradually reducing across multiple cities. Across these multiple periods of lockdowns we have come to realize that a store needs at least 45 days of unhindered operational time to get back to pre-Covid sales momentum. We have not seen any significant impact on our supply chain during the quarter. Our inventory is also gradually moving towards normal levels. Construction activity has also commenced at all our sites.

Commenting on DMart Ready, Noronha said, The DMart Ready business continued its gradual expansion across the MMR region, Ahmedabad, Pune, Bangalore and Hyderabad. Thus far the results on topline are very encouraging. The second wave has given further impetus to the business.

Shares of Avenue Supermarts were trading 0.39% lower at Rs 3,365.65 on BSE.

Avenue Supermarts owns and operates D-Mart stores. D-Mart is a national supermarket chain that offers customers a range of home and personal products under one roof. As of 30 June 2021 the company has 238 stores with Retail Business Area of 9.01 million sq. ft. across Maharashtra, Gujarat, Daman, Andhra Pradesh, Karnataka, Telangana, Tamil Nadu, Madhya Pradesh, Rajasthan, NCR, Chhattisgarh and Punjab.

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