Avenue Supermarts Q3FY24 Profit Surges 17% YoY; EBITDA Margin Remains Steady

Avenue Supermarts, the company behind the popular retail chain DMart and backed by investor Radhakishan Damani, has announced its financial results for the October-December quarter of fiscal 2023-24 (Q3FY24). The retail giant reported a significant 17% rise in its consolidated net profit, reaching Rs 690.61 crore, compared to Rs 589.68 crore in the corresponding period last year.

Avenue Supermarts reported a 17.3% surge in consolidated revenue from operations, totalling Rs 13,572.47 crore for Q3FY24. The basic earnings per share (EPS) for the December quarter also saw a notable increase, standing at Rs 10.62 in comparison to Rs 9.10 in the year-ago period.

The earnings before interest, tax, depreciation, and amortization (EBITDA) for Q3FY24 stood at Rs 1,120 crore, reflecting an improvement from Rs 965 crore in the corresponding quarter of the previous year. The EBITDA margin remained steady at 8.3%, showcasing the company's efficient management of operational costs.

During the third quarter of the fiscal year, Avenue Supermarts expanded its footprint by opening five new stores. With this expansion, the company's total number of stores now stands at 341.

In a key development, the company's board approved the appointment of Harishchandra M. Bharuka as an independent director for a term of five consecutive years, effective from January 13, 2024, pending approval from the shareholders.

Neville Noronha, the CEO & Managing Director of Avenue Supermarts, shared insights into the company's performance, stating, "We ended Q3 FY 2024 with a revenue growth of 17.2 per cent as compared to the corresponding quarter of last year. Contribution from general merchandise and apparel has stabilized, and trends are encouraging post-Diwali. This time the festive season sales were lower than expected in non-FMCG. Within FMCG, agri-staples (ex-edible oil) are going through significantly high inflation."

On Friday, the shares of Avenue Supermarts closed 0.56% higher at Rs 3,840.10 per share on the Bombay Stock Exchange (BSE).

Avenue Supermarts, with its flagship brand DMart, continues to demonstrate robust financial performance, marked by steady revenue growth, strategic expansion, and prudent financial management.