Avenue Supermarts' Q1 profit increased by six times to Rs 680 crore as revenue increased by ninety five percent
In the June quarter, the standalone profit increased to Rs 680 crore from Rs 115 crore in the equivalent period last fiscal year. Sequentially, the profit increased by around 46%.
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Avenue Supermarts, the operator of the D-Mart chain of hypermarkets, announced on July 9 a staggering 490 percent increase in standalone profit for the three months ending in June 2022, supported by strong topline and operating performance. The second COVID wave had an impact on the previous quarter, therefore the growth was based on a low base.
In the June quarter, the standalone profit increased to Rs 680 crore from Rs 115 crore in the equivalent period last fiscal. Sequentially, the profit increased by almost 46%.
During the quarter ended in June 2022, standalone operating revenue increased by 95% year over year to Rs 9,807 crore. Revenue growth on a sequential basis was 14 percent.
Ten new stores were added by Avenue Supermarts in the first quarter of the current fiscal year 2022–2023. "Over the last three fiscal years, we collectively opened 110 stores that never had the chance to function normally over the previous two years. This quarter, these stores did incredibly well "CEO and Managing Director Neville Noronha remarked.
Additionally, this is the first complete quarter with no disruption due to the COVID-19 epidemic.
Operatingly, EBITDA (profits before interest, tax, depreciation, and amortisation) reached Rs 1,008 crore in Q1FY23, an increase of 356 percent over the same period in the previous year. Additionally, margin increased significantly by 590 bps to 10.3 percent.
According to Noronha, the general merchandise and apparel categories experienced somewhat better growth than the prior quarter, but they are still suffering from the acute inflationary impact and Covid-19-led disruptions. The discretionary contribution mix has not yet reached pre-pandemic levels, but it is improving.
He continued by saying that the strongest indicator of the strength of the DMart business, the competitive environment, and the local economy is value growth through positive volume growth of discretionary products in relatively older locations.
Avenue made considerable progress in this area throughout the quarter, but he continued that Avenue would require another quarter of uninterrupted operations to fully comprehend this.
