Avenue Supermarts (DMart) reported 6.72% rise in consolidated net profit to Rs 589.68 crore on 25.51% increase in revenue from operations to Rs 11,569.05 crore in Q3 FY23 over Q3 FY22.
On a consolidated basis, profit before tax stood at Rs 811.75 crore in Q3 FY23, up 8.21% from Rs 750.17 crore in the corresponding quarter of last year.Earnings before interest, tax, depreciation and amortization (EBITDA) in Q3 FY23 grew 11.43% to Rs 965 crore compared with Rs 866 crore in Q3 FY22. EBITDA margin stood at 8.3% in Q3 FY23 as against 9.4% in Q3 FY22.
D-Mart follows 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. DMart opened 4 stores in Q3 FY23.
Commenting on the performance of the company, Neville Noronha, CEO & managing director of Avenue Supermarts, said, "Q3 saw our revenues grow by 24.7% over the corresponding quarter of last year. FMCG and staples segment continued to outperform the general merchandise and apparel segments. Gross margin percentage decline over the corresponding quarter of last year is a reflection of this mix change. Discretionary non-FMCG sales did not do as well as expected in this quarter."
He added, "We have further expanded our E-Commerce operations in 4 new cities while continuing to deepen our presence in the existing 18 cities. Our operations now span across 22 cities in India."
Further he said, "We are in the process of commencing a pharmacy shop-in-shop through one of our subsidiary (Reflect Healthcare and Retail) at one of our stores. This is yet another pilot that will complement our brick and mortar business using our existing store infrastructure."
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Avenue Supermarts 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. As of 31 December 2022, the company had 306 operating stores with retail business area of 12.6 million square feet across Maharashtra, Gujarat, Daman, Andhra Pradesh, Karnataka, Telangana, Tamil Nadu, Madhya Pradesh, Rajasthan, NCR, Chhattisgarh and Punjab.
The scrip declined 1.28% to end at Rs 3,862.20 on Friday, 13 January 2023.
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