Avenue Supermarts Reports 16.4% Jump In Q3 Profit

On Saturday, Avenue Supermarts, the operator of the DMart hypermarket chain, reported a 16.4% rise in net profit at Rs 446.95 crore for the December-ended quarter from Rs 384 crore in the same period a year ago.

Its consolidated total revenue for the quarter stood at Rs 7,542 crore, against Rs 6,809 crore in the same period last year, according to its stock exchange filing.

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) for the third quarter of the financial year 2020-21 was Rs 689 crore, as compared to Rs 597 crore in the corresponding quarter of last year. EBITDA margin stood at 9.1% when compared to 8.8% in December 2019.

PAT (profit after tax) margin stood at 5.9% in the December-ended quarter as compared to 5.6% a year ago, while Basic Earnings per share (EPS) fell to Rs 6.90 from Rs 6.14 in December 2019.

Commenting on the results, CEO & Managing Director of Avenue Supermarts, Neville Noronha said, "The quarter has seen further improvement in our business and financial metrics. Our overall sales and sales mix is now trending very close to our usual times except for specific customer consumption changes post COVID-19. Apparel, laundry, footwear, travel and such relevant out of home usage categories are taking more time to recover."

During the quarter, the company launched "DMart Ready" in select pin codes of Ahmedabad, Bangalore and Hyderabad. In addition, at some of our brick and mortar stores we have leased some part of the space to Avenue E-Commerce Limited (AEL) to commence e-commerce operations in those cities.

Shares of Avenue Supermarts closed 1.25% higher at Rs 2,958 per share. Earlier this week, the company crossed Rs 2 lakh crore in market valuation, for the first time ever.