DMart’s Q1 Performance: 2% Rise in Profits to 658.71 Crores, Yet Falls Short of Expectations
DMart’s Q1 Performance
Avenue Supermarts, the company that operates the renowned retail chain DMart, has recently disclosed its financial performance for the first quarter of the fiscal year 2023-24.
During Q1, Avenue Supermarts recorded a consolidated net profit of Rs 658.71 crore, representing a notable 2 percent growth compared to the same quarter in the previous year when the profit stood at Rs 642.89 crore.
Impressively, the company’s consolidated net profit saw a substantial surge of 43 percent from the preceding quarter’s figure of Rs 460.10 crore.
Despite these positive developments, Avenue Supermarts’ performance for the June quarter fell short of expectations set by experts. Nevertheless, the company remains a prominent player in the retail sector and continues to garner significant attention from investors and industry analysts alike.
Strong Revenue Surge: Avenue Supermarts Records Impressive 18% Growth in Revenue
Avenue Supermarts’ financial performance for the first quarter of the fiscal year 2023-24 demonstrated impressive growth, particularly in terms of revenue.
The company’s consolidated revenue surged by 18.2 percent year-on-year, reaching an impressive Rs 11,865.44 crore, compared to Rs 10,038.07 crore during the corresponding period a year earlier.
Furthermore, the company’s revenue also displayed a significant 12 percent increase when compared to the preceding quarter’s figure of Rs 10,594.11 crore.
In addition to the consolidated revenue growth, the company’s standalone total revenue for the quarter ending on June 30, 2023, also experienced substantial expansion.
The standalone revenue reached Rs 11,584 crore, marking an 18 percent rise from the previous year’s figure of Rs 9,807 crore.
While showcasing robust revenue growth, Avenue Supermarts also managed to achieve commendable results in terms of net profit. The company’s standalone net profit increased by 2.2 percent in the first quarter of FY24, reaching Rs 695 crore, compared to Rs 680 crore during the corresponding quarter of the previous year.
These impressive financial figures are indicative of Avenue Supermarts’ strong position in the retail industry and its ability to capitalize on market opportunities.
The substantial revenue and profit growth underscore the company’s ability to adapt and thrive in the dynamic business environment, making it a compelling entity for investors and stakeholders.
Q1 FY 2023-24 Performance: Avenue Supermarts’ Results Fall Short of Expectations
Avenue Supermarts’ financial results for the first quarter of the fiscal year 2023-24 have fallen short of brokerage estimates, revealing a mixed performance for the company.
According to a survey conducted by the brokerage, DMart’s revenue was projected to reach Rs 11,785 crore, and the net profit was anticipated to be around Rs 715 crore. While the revenue was largely in line with the estimates, the actual net profit came in lower than expected.
During Q1FY24, the company’s EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) amounted to Rs 1,035 crore, showing a marginal increase from Rs 1,008 crore recorded in the corresponding quarter of the previous year.
However, the EBITDA margin for Q1FY24 stood at 8.7 percent, which is lower when compared to the 10 percent EBITDA margin achieved in Q1FY23.
Neville Noronha, the CEO & MD of Avenue Supermarts, addressed the financial performance, stating, “Overall gross margin is lower as compared to the same period last year, mainly due to lower contribution from apparel and general merchandise sales.”
The decrease in gross margin highlights challenges faced by the company in specific segments during the quarter.
Despite the weaker than expected results, Avenue Supermarts remains a prominent player in the retail sector and will likely focus on strategizing and addressing the areas that impacted its performance.
As a dynamic and adaptable company, it is expected to continue striving for growth and optimizing its operations in the ever-evolving market landscape.
