Avenue Supermarts shares were flat at Rs 3,808.8 at 9.43 am after the D’Mart operator bought commercial property worth Rs 88 crore, in Mumbai, to open new stores.
The D’Mart chain owner bought 17 commercial spaces with a total area of 45,876.92 sq ft, said Propstack, which provides data on real estate and commercial real estate.
The commercial units are located in Kandivali West, in Mumbai. The units are in the basement, ground, first, and second floors of a building.
Avenue Supermarts on September 4 opened a new store in Morbi, Gujarat, taking the total store count to 333.
Avenue Supermarts’ net profit fell 3.9 percent Year-on-Year (YoY) to Rs 659 crore in the April-to-June quarter. Revenue for the company increased 18 percent YoY to Rs 11,865 crore in the same period.
The company’s EBITDA margins fell 110 basis points YoY to 7.3 percent in the April-to-June quarter. The management said that the fall in margin has come on the back of a slow recovery in gross merchandise and apparel sales which are high-margin businesses compared to staples.
Avenue Supermarts was founded by Radhakishan Damani in 2002 when its first store was opened in Powai, Mumbai.
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