You are here: Home » PTI Stories » National » News
Business Standard

Avenue Supermarts shares tumble nearly 10% post Q3 earnings

Topics
Business Finance

Press Trust of India  |  New Delhi 

Shares of Avenue Supermarts, which runs the D-Mart supermarket chain, slumped nearly 10 per cent Monday after its December 2018 quarter earnings failed to cheer investors.

The scrip cracked 9.48 per cent to Rs 1,420.20 on BSE.

On NSE, shares of the company tumbled 9.90 per cent to Rs 1,416.

Avenue Supermarts Saturday posted 2.1 per cent jump in its net profit to Rs 257 crore for the December 2018 quarter.

The company had reported a net profit of Rs 252 crore in the corresponding quarter a year ago, it said in a BSE filing.

According to JM Financial Institutional Securities, 3QFY19 turned out to be another disappointing quarter for DMart.

While the gross margin impact of its now-known strategy of driving higher throughout its stores by lowering prices across categories has been built into forecasts, the disappointment this time round was led by a surprisingly sharp surge in other expenses' (45 per cent), it said.

"DMart's other expenses have rarely grown at a significantly faster clip versus sales growth in the past," it added.

The company's revenue from operations in the quarter under review stood at Rs 5,451 crore, up 33.2 per cent, as against Rs 4,094 crore in the year-ago period.

Avenue Supermarts' CEO and Managing Director Neville Noronha said the company's topline continued to grow well, even though profit after tax (PAT) growth remained flat vis-a-vis the corresponding quarter last year, primarily due to gross margin reduction on account of price cuts.

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

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Mon, January 14 2019. 12:35 IST
RECOMMENDED FOR YOU