DMart Q2FY24 results: PAT declines 9% despite 18.7% increase in revenue

Avenue Supermarts Ltd, which owns and operates the retail chain D-Mart, on Saturday reported a 9.09 per cent fall in consolidated net profit after tax (PAT) at Rs 623.35 crore for the second quarter ended September 30, as gross margins were impacted due to lesser contribution from general merchandise and apparel business.

The company had posted a net profit of Rs 685.71 crore in the July-September quarter a year ago, said Avenue Supermarts in a regulatory filing.

However, its revenue from operations was up 18.66 per cent to Rs 12,624.37 crore during the quarter under review, as against Rs 10,638.33 crore in the corresponding quarter last fiscal.

Avenue Supermarts' total expenses in Q2/FY24 were at Rs 11,809.35 crore, up 18.97 per cent.

The total income of Avenue Supermarts in the September quarter was at Rs 12,661.29 crore, up 18.61 per cent.

For the first half of this fiscal, Avenue Supermarts' revenue from operations was at Rs 24,489.81 crore and its net profit was at Rs 1,282.06 crore.

"PAT margin stood at 5.2 per cent in H1FY24, as compared to 6.4 per cent in H1FY23," it said.

Avenue Supermarts CEO & Managing Director Neville Noronha said: "Q2 FY2024 saw revenue growth of 18.5 per cent, as compared to the corresponding quarter of last year.

"Our gross margins continue to be lower compared to the same period in the previous year, due to lesser contribution from the higher margin general merchandise and apparel business."

During the June quarter, D-Mart opened nine new stores taking the total count to 336.

D-Mart operates across Maharashtra, Gujarat, Daman, Andhra Pradesh, Karnataka, Telangana, Tamil Nadu, Madhya Pradesh, Rajasthan, NCR, Chhattisgarh and Punjab.