Margin contracted to 9.74 percent during the quarter compared to 10.81 percent in same period last year.
Avenue Supermarts, the operator of retail chain D-Mart, kicked off FY20 on a positive note by reporting healthy double-digit growth in bottomline as well as topline. However, the operating margin contracted in the quarter ended June 30.
Consolidated profit during the quarter grew by 31.87 percent to Rs 323.09 crore compared to the year-ago period.
Consolidated revenue from operations increased 27 percent to Rs 5,814.6 crore in June quarter, against Rs 4,575.8 crore reported in the corresponding period of the last fiscal.
At the operating level, earnings before interest, tax, depreciation and amortisation (EBITDA) saw a whopping 41 percent year-on-year increase at Rs 596.8 crore in Q1, but margin contracted to 9.74 percent during the quarter, compared to 10.81 percent in same period last year.
The margin was dented by a significant rise in total expenses (up 26.4 percent YoY) including finance cost (up 81 percent) and depreciation & amortisation expenses (up 90.4 percent).
"As we have said in the past, Q1 margins are not usually a reflection of the entire year. We opened 8 stores in this quarter, large parts of which are a spillover from the previous quarter," Neville Noronha, CEO & Managing Director said.As of June 2019, the company had 184 stores across Maharashtra, Gujarat, Daman, Andhra Pradesh, Karnataka, Telangana, Tamil Nadu, Madhya Pradesh, Rajasthan, NCR, Chhattisgarh and Punjab.The Great Diwali Discount!
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