Radhakishan Damani-Backed DMart's Consolidated Net Profit Falls To Rs 623 Crore In Q2, Revenue Rises 19% YoY

Radhakishan Damani owned the largest listed retail chain DMart operator Avenue Supermarts which delivered a mixed performance in the September quarter of FY24. DMart earned a consolidated net profit of Rs 623.35 crore, registering a decline of 9.09% year-on-year. PAT margins also contracted to 4.9% in Q2FY24 as compared to 6.4% in Q2FY23.

The company's PAT stood at Rs 686 crore in Q2 of FY23.

Further, consolidated EBITDA stood at Rs 1,005 crore, as compared to Rs. 892 crore in the corresponding quarter of last year. EBITDA margin stood at 8.0 % in Q2FY24 as compared to 8.4% in Q2FY23.

Meanwhile, the top-line front witnessed a positive performance. Consolidated revenue stood at Rs 12,624.37 crore in Q2FY24, rising by a whopping 18.66% from a revenue of Rs 10.638.33 crore a year ago same period.

Basic Earnings per share (EPS) for Q2FY24 stood at Rs 9.58, as compared to Rs 10.58 for Q2FY23.

Neville Noronha, CEO & Managing Director, Avenue Supermarts Limited, said, "Q2 FY 2024 saw revenue growth of 18.5% as compared to the corresponding quarter of last year. Our gross margins continue to be lower compared to the same period in the previous year due to lesser contribution from the higher margin General Merchandise and Apparel business. We opened 9 new stores during the quarter taking our total store count to 336."

On a standalone basis, DMart posted a net profit of Rs 659 crore in Q1FY24, lower than Rs 730 crore in the corresponding quarter of last year. PAT margin stood at 5.3% in Q2FY24 as compared to 7.0% in Q2FY23. Revenue was at Rs 12,308 crore in the quarter under review, as compared to Rs 10,385 crore in the same period last year. EBITDA came in at Rs 1,002 crore, as compared to Rs 895 crore in the corresponding quarter of last year. EBITDA margin stood at 8.1% in Q2FY24 as compared to 8.6% in Q2FY23.

D-Mart follows an Everyday low cost - Everyday low price (EDLC-EDLP) strategy which aims at procuring goods at competitive prices, using operational and distribution efficiency and thereby delivering value for money to customers by selling at competitive prices.

In the first six-month period of FY24, on a consolidated basis, DMart's net profit was at Rs 1,282 crore, also lower from Rs 1,329 crore in H1FY23. Total revenue for H1FY24 stood at Rs 24,490 crore, as compared to Rs 20,676 crore in the same period last year.

Avenue Supermarts Limited is a Mumbai-based company, which owns and operates D-Mart stores. D-Mart is a national supermarket chain that offers customers a range of home and personal products under one roof. The
The company offers a wide range of products with a focus on Foods, Non-Foods (FMCG) and General Merchandise & Apparel product categories.

The Company opened its first store in Mumbai, Maharashtra in 2002. As of September 30, 2023, the Company had 336 operating stores with a Retail Business Area of 13.9 million sq. ft across Maharashtra, Gujarat, Daman, Andhra Pradesh, Karnataka, Telangana, Tamil Nadu, Madhya Pradesh, Rajasthan, NCR, Chhattisgarh and Punjab.

Its products range under various categories, such as grocery and staples, dairy and frozen, fruits and vegetables, home and personal care, bed and bath, crockery, footwear, toys and games, kids' apparel, apparel for men & women and daily essentials.

Investors will react to DMart's Q2 earnings next week on Monday. On October 13, ahead of the earnings, DMart's share price closed at Rs 3932.75 apiece, up by 1.78% on BSE. Its market cap is nearly Rs 2.56 lakh crore.