Avenue Supermarts Ltd, which operates DMart chain of retail stores, has reported consolidated profit after tax of Rs 418 crore for the quarter ended September 2021, an increase of 110% from Rs 199 crore in the same quarter previous year. Sequentially, the profit is significantly higher from Rs 95.36 crore (low base due to lockdown impact).
Consolidated revenue came in higher at Rs 7,789 crore for the quarter, an increase of 47% compared to Rs 5,306 crore in June 2020 quarter. Sequentially, the revenue is higher by 50% from Rs 5,183 crore.
Mr. Neville Noronha, CEO & Managing Director, Avenue Supermarts Limited , said “Covid-19 related lockdown restrictions were eased further during this quarter. Revenue in the DMart stores grew by 46.6% over the corresponding quarter of last year”.
He further added, DMart has 187 stores that are 2 year or older, and these stores grew by 23.7% in the month of September 2021 as compared to September 2020.
Purchases at Rs 7,176 crore came in higher by 61% compared to previous quarter and 56% higher on a YOY basis. Employee Costs were flat compared to previous quarter but were 11% higher compared to same quarter previous year. Other expenses were higher by 13% sequentially as well as on a YOY basis.
However, total Expenses (excluding Depreciation and Finance Cost) as a percentage of revenue were 91% of revenue from operations, which were lower by ~500 bps sequentially and by ~300 bps on a YOY basis.
Overall gross margin was higher at 8.6% compared to4.3% in the previous quarter and 6.2% in previous year. Gross margins have improved year-on-year due to relatively longer hours of operations, higher general merchandise sales, rising staples/FMCG product prices and higher sale of non-essential products.
Net margin for the quarter improved to 5.4% which was at 1.8% in the previous quarter and 3.7% in the same period last year.
The stock closed at Rs. 5,323.75 per share on October 14, up Rs. 206.6 (4.04%) on the back of better results expectations. It has generated 169% returns over the past one year, close to 60% over the past 3 months and 33.77% over the past 1 month.
EPS for the six months ended Sep’21 stands at 7.92 compared to 3.68 in the previous year.