Avenue Supermarts, the operator of hypermarkets retail chain D-Mart, showed a healthy 53.3 percent growth in Q3 FY20 profit on January 11, which was ahead of analyst estimates. The growth was driven by lower tax cost, and higher revenue and operating income.
Standalone profit during the quarter jumped to Rs 394.3 crore, up from Rs 257.1 crore in same period last year.
Revenue from operations grew by 23.9 percent year-on-year to Rs 6,751.9 crore during the quarter that ended on December 2019, the company said in its BSE filing.
Avenue added seven stores in Q3FY20.
"Topline growth was in line with our estimates. PAT Margin improvement partly reflects the benefit due to revision in corporate tax rates. We have opened 20 stores during the first 9 months of this fiscal," Neville Noronha, CEO and Managing Director said.
At the operating level, earnings before interest, tax, depreciation and amortisation (EBTIDA) increased 30.8 percent year-on-year to Rs 593.1 crore, and its EBITDA margin expanded by 50 basis points to 8.8 percent in Q3 Fy20.
Numbers beat analyst estimates. According to the average of estimates of analysts polled by CNBC-TV18, profit was estimated at Rs 356 crore on revenue of Rs 6,640 crore for the quarter and EBITDA was expected at Rs 571 crore with margin at 8.6 percent in Q3.The company's stock rallied 39 percent in last six months.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.