Avenue Supermarts Q3 PAT rises 24% YoY to Rs 553 cr

Avenue Supermarts (DMart)'s consolidated net profit rose 23.62% to Rs 552.56 crore on 22.22% increase in net sales to Rs 9217.76 crore in Q3 December 2021 over Q3 December 2020.

On a consolidated basis, DMart's earnings before interest, tax, depreciation and amortization (EBITDA) in Q3FY22 stood at Rs 866 crore compared with Rs 689 crore in the corresponding quarter of last year. EBITDA margin stood at 9.4% in Q3FY22 as against 9.1% in Q3FY21.

On a standalone basis, total revenue stood at Rs 9,065 crore, a year-on-year growth of 22%. EBITDA stood at Rs 868 crore, a y-o-y growth of 25.6%. EBITDA margin stood at 9.6% in Q3FY22 compared with 9.3% in Q3FY21. PAT stood at Rs 586 crore, a y-o-y growth of 24.6%.

The company added 17 stores in Q3FY22 and 29 stores in 9MFY22.

Commenting on the performance of the company Neville Noronha, CEO & managing director, Avenue Supermarts, said: "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."

Mumbai-based 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 31 December 2021, the company had 263 operating stores with retail business area of 10.3 million square feet across Maharashtra, Gujarat, Daman, Andhra Pradesh, Karnataka, Telangana, Tamil Nadu, Madhya Pradesh, Rajasthan, NCR, Chhattisgarh and Punjab.

Shares of Avenue Supermarts were down 0.65% at Rs 4700.

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