Avenue Supermarts Q1 PAT soars 137% yoy to Rs 95 cr
On a consolidated basis, Avenue Supermarts posted net profit of 137.9% to Rs 95.36 crore on a 33.5% increase in net sales to Rs 5,183.12 crore in the first quarter of FY22 compared to the first quarter FY21.
Pre-tax profit climbed 133.7% to Rs 137.36 crore in Q1 FY22 from Rs 58.77 crore posted in Q1 FY21. EBITDA in the first quarter of fiscal 22 was Rs 224 crore, compared to Rs 112 crore in the corresponding quarter of last year. The EBITDA margin was 4.3% in Q1 FY22 compared to 2.9% in Q1 FY21.
D-Mart follows the Everyday low cost – Everyday low price (EDLC-EDLP) strategy which aims to purchase goods at competitive prices, using operational and distribution efficiency and thus offer good value for money to customers by selling at competitive prices.
Commenting on the company’s performance, Neville Noronha, CEO and Managing Director of Avenue Supermarts, said: The first quarter of fiscal 2021-22 saw a much stronger second wave of Covid-19 restrictions. We have lost many more days or had a higher restriction on the number of store hours compared to the same period last year.
He added that revenue increased 31% from the corresponding quarter last year. This is because the foreclosures occurred at different times in different regions during the quarter. Some cities have announced early shutdowns and continue to apply strict measures even now, while some cities have relaxed restrictions within 3 to 4 weeks of their early shutdown. There were also cities that announced closures much later and are now easing them. Despite fewer opening hours this time around, we had more customer traffic than at the same time last year and that translated into higher sales. One of the main reasons for this is that although the restrictions on operations were more severe, personal mobility was relatively less strict than last time around. In addition, we also opened 22 new stores after the first quarter of fiscal 2020-21. Lockdown measures are now gradually being reduced in several cities. During these multiple lockdown periods, we have realized that a store needs at least 45 days of unhindered operating time to get back to the pre-Covid sales momentum. We did not see a significant impact on our supply chain during the quarter. Our inventory is also gradually moving towards normal levels. Construction activity has also started at all of our sites.
Commenting on DMart Ready, Noronha said: The DMart Ready business has continued its gradual expansion in MMR region, Ahmedabad, Pune, Bangalore and Hyderabad. So far, the results on the topline are very encouraging. The second wave gave new impetus to the company.
Avenue Supermarts shares were trading down 0.39% at Rs 3,365.65 on BSE.
Avenue Supermarts owns and operates D-Mart stores. D-Mart is a national supermarket chain that offers its customers a range of home and personal products under one roof. As of June 30, 2021, the company had 238 stores with a commercial area of 9.01 million square feet in Maharashtra, Gujarat, Daman, Andhra Pradesh, Karnataka, Telangana, Tamil Nadu, Madhya Pradesh, Rajasthan, NCR, Chhattisgarh and Punjab.
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