Avenue Supermarts, the operator of DMart retail stores, on Saturday reported a profit after tax (PAT) of Rs 679.64 crore in Q1FY23, a jump of about 490% from Rs 115.13 crore year-on-year (YoY). The growth — that came on the back of a strong top line — was however distorted from a low base effect because of the overhang of the Covid pandemic.
The Mumbai-based company also reported a 94% increase in its revenue from operations which came in at Rs 9,806.89 crore, while it was at Rs 5,301.75 crore in Q1FY22.
Earnings before interest, taxes, depreciation and amortisation (Ebitda) in Q1FY23 stood at Rs 1,008 crore, as compared with `221 crore in the corresponding quarter of last year. Ebitda margin stood at 10.3% in Q1FY23 as compared to 4.4% in Q1FY22.
“Q1 like Q3 is a good revenue as well as profit-enhancing period due to back-to-school/college season and the onset of the monsoons. We ended Q1FY23 with growth across all key financial parameters. There has been a very good recovery of overall sales. However, this quarter’s performance is not comparable to the same period last year due to the second wave of Covid-19 during that time,” said Neville Noronha, CEO and managing director, Avenue Supermarts. “General merchandise and apparel categories saw relatively better traction than the previous quarter but still has some overhang of the Covid-19-led disruptions and acute inflationary impact. High inflation over the last two years hides the possible stress in volume growth for discretionary categories of mass consumption.”
DMart also opened 110 new stores across the country over the last three financial years which didn’t get the opportunity to operate at full potential because of the pandemic. “These are stores that are larger, better designed and have capacity to handle larger scale of revenue. These stores have done extremely well in this quarter. This is also the first full quarter of zero disruption from Covid-19 pandemic,” Noronha said.
The company’s online delivery portal — DMart Ready — continues to make inroads across 12 Indian cities. The company said it was assessing feedback it got from smaller towns and to increase presence in larger cities.