Avenue Supermarts, the operator of hypermarkets chain, on July 10 reported a massive 132.3 percent year-on-year increase in standalone profit at Rs 115.13 crore, driven by a low base in year-ago period, but impacted by restriction on number of hours of store operations due to second wave of Covid-19.
The standalone revenue from operations at Rs 5,031.75 crore in Q1FY22 grew by 31.3 percent compared to year-ago quarter, said the company in its BSE filing.
"Q1 FY2021-22 saw a much stronger second wave of Covid-19 restrictions. We lost significantly more days or had higher restriction on number of hours of store operations compared to the same period last year," said Neville Noronha, CEO & Managing Director.
He further said, "The increase in revenues by 31 percent is because the lockdown periods were at different times in different regions during the quarter."
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"Despite lesser hours of operations this time, we had more customer footfalls than in the same period last year and this has translated into higher sales. One of the key reasons for this is that even though restrictions on operations were more severe, personal mobility was relatively less stringent than last time. Additionally, we also had 22 new stores that were opened post Q1 FY21," he added.
At the operating level, earnings before interest, tax, depreciation and amortisation (EBITDA) increased 103.2 percent to Rs 221.22 crore in June 2021 quarter YoY. Margin expanded 155 bps to 4.39 percent during the quarter, compared to year-ago period.
Noronha said Avenue has not seen any significant impact on its supply chain during the quarter. "Its inventory is also gradually moving towards normal levels. Construction activity has also commenced at all our sites."
Avenue Supermarts added 4 stores during June 2021 quarter, taking the total count of stores to 238.
On the consolidated basis, its profit in Q1FY22 grew by 137.9 percent to Rs 95.37 crore and revenue jumped by 33.5 percent to Rs 5,183.12 crore.