DMart Net Profit Rises 2% To ₹659 Crore, Revenue Jumps 18%
Avenue Supermarts, the company that operates the popular DMart hypermarket chain, has reported a 2 percent year-on-year increase in net profit for the June quarter.
The net profit stood at Rs 695 crore, compared to Rs 679.64 crore in the same quarter last year.
The company’s revenue from operations, on the other hand, saw a significant 18 percent growth to reach Rs 11,584 crore in the June quarter, up from Rs 9,807 crore in the previous year.
The operating profit, which is the earnings before interest, tax, depreciation, and amortization (EBITDA), increased by 2.8 percent to Rs 1,036 crore compared to Rs 1,008 crore in the same quarter last year.
However, the company’s margins were slightly lower at 8.9 percent, down from 10.3 percent in the previous year.
The CEO and Managing Director of Avenue Supermarts, Neville Noronha, stated that the revenue grew by 18 percent in the quarter, but the gross margins were lower due to reduced sales contribution from apparel and general merchandise.
However, he mentioned that the contribution from general merchandise is recovering and moving towards pre-pandemic levels. The company also opened three new stores during the quarter, bringing the total number of stores to 327.
Additionally, Avenue Supermarts’ board has given consent to offer employee stock options (ESOPs) under the ESOP scheme 2023.
The company plans to offer up to 1,500,000 options, which would entitle employees to an equal number of equity shares.
These options will be granted to eligible employees in the General Management grade who are currently employed by the company.
Following the financial results, shares of Avenue Supermarts will likely be in focus in trading on Monday. The stock had a slight increase of 0.48 percent to Rs 3,840 apiece on Friday.
Over the past five trading sessions, DMart shares have increased by 0.61 percent, although the stock has seen a decline of 5.71 percent year-to-date.