Muted fourth-quarter show to may cap upsides for Avenue Supermarts

Growth in the quarter has largely come from store additions

India’s largest listed retailer by market capitalisation posted a lower than expected sales performance in the March quarter (Q4FY22). Revenue for Avenue Supermarts, which runs the Dmart chain of stores, was up 18 per cent y-o-y to Rs 8,606 crore (down 5 per cent sequentially) pegged back by initial impact due to Covid at the start of the quarter.

Even after factoring in some impact of the Omicron Covid variant, the company reported a soft revenue performance, believes Motilal Oswal Research. Growth over the March 2020 quarter which had nine days of lost sales was just under 39 per cent.