DMart Q1 result: Net profit rises 2% to Rs 659 crore; revenue up 18%, misses estimates

saumyasingh July 15, 2023

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DMart Q1 result: Net profit rises 2% to Rs 659 crore; revenue up 18%, misses estimates

Avenue Supermarts is a company that operates the popular retail chain DMart in India. On July 15, the company announced its financial results for the first quarter of the financial year 2023-24. It reported a consolidated net profit of Rs 6,58.71 crore for this quarter, which represents a 2 percent increase compared to the net profit of Rs 642.89 crore in the same period of the previous year.

The net profit is a measure of a company’s profitability after deducting all expenses, including taxes and interest, from its total revenue. In this case, Avenue Supermarts’ net profit for the first quarter of FY 2023-24 indicates that the company earned a profit of Rs 6,58.71 crore during that period.

Avenue Supermarts’ consistent growth in net profit demonstrates its ability to maintain a profitable business model. This growth could be attributed to various factors, such as increased sales, efficient cost management, and strategic decision-making. However, it’s important to note that these factors can vary for each company, and a comprehensive analysis of the company’s financial statements would provide a more detailed understanding of its performance.

Overall, Avenue Supermarts’ positive net profit for the first quarter of FY 2023-24 indicates a steady financial performance and reflects the company’s efforts to maintain its position in the retail industry.

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Avenue Supermarts, the operator of DMart retail chain in India, reported significant growth in its consolidated net profit for the first quarter of the financial year 2023-24. The company’s consolidated net profit rose by 43 percent to reach Rs 658.71 crore in Q1FY24, compared to Rs 460.10 crore in the previous quarter.

This substantial increase in net profit signifies a significant improvement in the company’s profitability over a relatively short period. It suggests that Avenue Supermarts experienced a surge in revenue, efficient cost management, or a combination of both during the first quarter of FY23-24.

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Additionally, the standalone net profit of Avenue Supermarts also witnessed growth. The standalone net profit increased by 2.2 percent to Rs 695 crore in Q1FY24, compared to Rs 680 crore in the corresponding quarter of the previous year.

Standalone net profit refers to the company’s profit derived solely from its core operations, without considering any subsidiaries or joint ventures. Avenue Supermarts’ ability to maintain and marginally increase its standalone net profit indicates the company’s efficiency in managing its primary retail business operations.

The growth in both consolidated and standalone net profit highlights Avenue Supermarts’ strong performance and its ability to generate sustained profits. It suggests that the company has been successful in attracting customers, increasing sales, and effectively managing costs.

It is important to note that financial performance can be influenced by various factors, including market conditions, competition, operational efficiency, and strategic decisions. A comprehensive analysis of Avenue Supermarts’ financial statements would provide deeper insights into the specific drivers behind the profit growth.

Overall, the significant rise in consolidated net profit by 43 percent and the slight increase in standalone net profit by 2.2 percent indicate a positive financial outlook for Avenue Supermarts in the first quarter of FY23-24.

Avenue Supermarts, the operator of DMart retail chain in India, has reported a significant year-on-year (YoY) rise in consolidated revenue from operations for the quarter ended June 30, 2023. The company’s consolidated revenue increased by 18.2 percent to reach Rs 11,865.44 crore compared to Rs 10,038.07 crore in the corresponding period of the previous year.

This YoY increase in consolidated revenue indicates that Avenue Supermarts experienced a substantial growth in its top-line performance. It suggests that the company generated higher sales and witnessed an increase in customer footfall during the quarter, resulting in increased revenue from its operations.

Furthermore, Avenue Supermarts also witnessed a 12 percent increase in consolidated revenue from the previous quarter. The revenue rose from Rs 10,594.11 crore in the previous quarter to Rs 11,865.44 crore in the current quarter. This sequential growth in revenue indicates a continued positive trend and reinforces the company’s ability to sustain its sales growth.

In terms of standalone total revenue, which considers revenue derived solely from the core operations without any subsidiaries or joint ventures, Avenue Supermarts reported a significant 18 percent YoY rise. The standalone total revenue for the quarter ended June 30, 2023, amounted to Rs 11,584 crore compared to Rs 9,807 crore in the corresponding period of the previous year.

The substantial increase in standalone total revenue demonstrates the company’s strong performance in its core retail business operations. It suggests that Avenue Supermarts was successful in attracting customers, driving sales, and expanding its market share.

The growth in both consolidated and standalone revenue highlights Avenue Supermarts’ ability to generate higher sales and maintain a robust top-line performance. This positive revenue growth indicates the company’s strong market position and customer appeal.

It’s important to note that revenue growth can be influenced by various factors, including market conditions, consumer demand, competitive landscape, and company-specific strategies. A comprehensive analysis of Avenue Supermarts’ financial statements would provide deeper insights into the specific drivers behind the revenue growth.

Overall, the reported 18.2 percent YoY rise in consolidated revenue and the 18 percent YoY rise in standalone total revenue reflect the strong financial performance of Avenue Supermarts in the quarter ended June 30, 2023.

DMart, operated by Avenue Supermarts Limited, reported revenue that was in line with expectations, but its profit fell short of estimates. According to a poll of brokerages, the company was expected to achieve Q4 revenue of Rs 11,785 crore and a net profit of Rs 715 crore.

In Q1FY24, DMart’s Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) amounted to Rs 1,035 crore, compared to Rs 1,008 crore in the same quarter of the previous year. The EBITDA margin for Q1FY24 was 8.7 percent, a decline from 10 percent in Q1FY23.

Neville Noronha, the CEO & Managing Director of Avenue Supermarts Limited, stated that overall gross margins were lower compared to the same period in the previous year. This was primarily attributed to the reduced sales contribution from apparel and general merchandise.

During the quarter, Avenue Supermarts opened three new stores, bringing the total number of operational stores to 327 as of June 30, as mentioned in the company’s exchange filing.

On July 14, the stock of Avenue Supermarts closed at Rs 3,840 on the National Stock Exchange, showing a 0.48 percent increase from the previous day’s closing price.