The retail chain DMart’s operator, Avenue Supermarts, announced on July 15 a consolidated net profit for the first quarter of the fiscal year 2023–24 of Rs. 6,58.71 crore, an increase of 2% from Rs. 642.89 crore in the same period.
The company’s combined net profit increased 43% over the previous quarter’s Rs 460.10 crore.
Standalone net profit for the first quarter of FY24 improved by 2.2 percent to Rs. 695 crore from Rs. 680 crore in the same quarter of FY23.
According to the company, consolidated income from operations climbed by 18.2% YoY (year over year) to Rs 11,865.44 crore from Rs 10,038.07 crore in the previous year. From Rs 10,594.11 crore in the preceding quarter, revenue increased by 12%.
Comparing the same period in 2022 to the quarter that ended June 30, 2023, standalone total revenue increased from Rs 9807 crores by 18% to Rs. 11,584 crore.
Although the revenue was substantially in line, the profit fell short. A survey of brokerages estimated that DMart’s Q4 revenue was Rs 11,785 crore and its net profit was Rs 715 crore.
EBITDA (earnings before interest, taxes, depreciation, and amortisation) was Rs. 1,035 crore in Q1FY24 as opposed to Rs. 1,008 crore in the same quarter of the previous year. EBITDA margin was 8.7% in the first quarter of FY24 as opposed to 10% in the same period of FY23.
“Overall gross margins are lower compared to the same period in the previous year, primarily due to lower sales contribution of apparel and general merchandise,” said Neville Noronha, CEO & Managing Director, Avenue Supermarts Limited.
