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Avenue Supermarts gains after impressive Q3 numbers

Capital Market 

Shares of supermarket chains operator rose 1.56% to Rs 1906 after the company announced its Q3 December 2019 results on Saturday, 11 January 2020.

On a consolidated basis, Avenue Supermarts' net profit jumped 55.3% to Rs 384.04 crore in Q3 December 2019 compared with net profit of Rs 247.25 crore in Q3 December 2018. Profit after tax (PAT) margin improved to 5.6% in Q3 December 2019 from 4.5% in Q3 December 2018.

Net sales rose 24.4% to Rs 6808.93 crore in Q3 December 2019 from Rs 5474.27 crore in Q3 December 2018.

Tax expenses for the quarter and nine months ended 31 December 2019 reflect changes made vide Taxation Laws Amendment Ordinance 2019 as applicable to the company. Accordingly, the firm's total tax expenditure fell by 27.1% to Rs 110.84 crore in Q3 December 2019 over Q3 December 2018.

Earnings before interest, tax, depreciation and amortization (EBITDA) in Q3 December 2019 stood at Rs. 597 crore, up by 32.67% from Rs. 450 crore in the corresponding quarter of last year. EBITDA margin improved from 8.2% in Q3 December 2018 to 8.8% in Q3 December 2019.

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 financial performance of the company, Neville Noronha, CEO & managing director, Avenue Supermarts, said, Our topline growth was in line with our estimates. PAT Margin improvement partly reflects the benefit due to revision in corporate tax rates. We have opened 20 stores during the first 9 months of this fiscal.

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 December 31, 2019 the company had 196 stores across Maharashtra, Gujarat, Daman, Andhra Pradesh, Karnataka, Telangana, Tamil Nadu, Madhya Pradesh, Rajasthan, NCR, Chhattisgarh and Punjab.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, January 13 2020. 09:33 IST