Avenue Supermarts scales record high after robust Q1

Avenue Supermarts rose 3.26% to Rs 1,644.50 at 09:38 IST on BSE after the company reported 43.39% rise in net profit to Rs 250.61 crore on 26.31% rise in total income to Rs 4573.67 crore in Q1 June 2018 over Q1 June 2017.

The result was announced after market hours yesterday, 30 July 2018.

Meanwhile, the S&P BSE Sensex was down 56.24 points or 0.15% at 37,438.16

On the BSE, 1.22 lakh shares were traded on the counter so far as against average daily volumes of 46,000 shares in the past two weeks. The stock had hit a record high of Rs 1,663.80 in intraday trade today, 31 July 2018. The stock had hit a low of Rs 1,622 so far during the day. The stock had hit a 52-week low of Rs 861 on 11 August 2017.

The large-cap company has equity capital of Rs 624.08 crore. Face value per share is Rs 10.

Avenue Supermarts' earnings before interest, taxation, depreciation and amortization (EBITDA) rose 39.4% to Rs 423 crore in Q1 June 2018 over Q1 June 2017. EBITDA margin rose to 9.3% in Q1 June 2018 from 8.4% in Q1 June 2017.

Avenue Supermarts' said that the company 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.

Neville Noronha, CEO & Managing Director, Avenue Supermarts said Q1 June 2018 has seen slightly lower gross margins which is a result of conscious effort to maintain or bring down prices for consumers across categories.

Avenue Supermarts is a Mumbai-based company, which owns and operates D-Mart stores. D-Mart is an emerging national supermarket chain that offers customers a range of home and personal products under one roof. The company offers a wide range of products with a focus on Foods, Non-Foods (FMCG) and General Merchandise & Apparel product categories. As of 30 June 2018, the company had 157 stores with Retail Business Area of 5 million sq. ft. across Maharashtra, Gujarat, Daman, Andhra Pradesh, Karnataka, Telangana, Tamil Nadu, Madhya Pradesh, Rajasthan, NCR, Chhattisgarh and Punjab.

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