Avenue Supermarts aims to open 15-20 D-Mart stores per annum

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Avenue Supermarts, the parent of the Mumbai-based supermarket chain D-Mart, is planning to open 15-20 stores per annum, according to Neville Noronha, Chief Executive Officer and Managing Director, Avenue Supermarts.

“We have planned to add 15-20 stores per annum. In the past nine months we have opened 10 stores of D-Mart,” Noronha said adding that these outlets will largely be in Central and Western South of India.

Currently, there are 141 D-Mart outlets across India.

The company today reported a stellar 65.8 percent rise in the December quarter net profit to Rs 251.8 crore against Rs 151.9 crore reported during the same period last year.

The company’s revenues rose 23 percent at Rs 4,094.8 crore against Rs 3,339.3 crore year-on-year.

At the operating level, the earnings before interest, taxes, depreciation and amortisation (EBITDA) soared 46.4 percent at Rs 421.8 crore against Rs 288.2 crore in the corresponding quarter last year.

The operating margin has come in at 10.3 percent against 8.63 percent year-on-year.

Basic earnings per share (EPS) for Q3FY18 stood at Rs. 4.03, as compared with Rs. 2.70 for Q3FY17.

“Gross margin increase is due to improvement in sales mix and efficiency of centralised procurement. Growth in this quarter appears to be lower as compared to previous year quarter because of demonetisation base effect. Growth in December '16 quarter was significantly higher than the growth of FY 16-17. Speed of opening new stores has to improve. There is an opportunity to do better there,” Neville Noronha, CEO & Managing Director, Avenue Supermarts said in a statement to the exchanges.

Avenue Supermarts, listed on the stock exchanges with a blockbuster listing in March last year, making Radhakishan Damani the founder of the company and a low-profile investor a part of India's richest 20 club.

The board approved the acquisition of 50.79 percent paid-up share capital of Avenue E-Commerce, an associate company of Avenue Supermarts. Post acquisition, Avenue E-Commerce shall become a wholly-owned subsidiary of Avenue Supermarts, the company said.