Avenue Supermarts Q2 net profit surges 64 per cent
Oct 15, 2022
Mumbai (Maharashtra) [India], October 15 : Avenue Supermarts, operator of DMart chain of retail stores, on Saturday, said its consolidated net profit jumped by 64 per cent to Rs 686 crore for the second quarter of the current financial year as compared to Rs 418 crore recorded in the corresponding quarter of the previous year.
The company's Basic Earnings per share (EPS) for the second quarter of FY23 stood at Rs 10.58, as compared to Rs 6.45 for Q2 of FY22.
Total Revenue for the quarter ended September 30, 2022, stood at Rs 10,638 crore, as compared to Rs 7,789 crore in the same period last year.
Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) in Q2 FY23 stood at Rs 892 crore, as compared to Rs 669 crore in the corresponding quarter of last year. EBITDA margin stood at 8.4 per cent in Q2 FY23 as compared to 8.6 per cent in Q2 FY22.
On a standalone basis, Avenue Supermarts net profit surged to Rs 730 crore for Q2FY23, as compared to Rs 449 crore in the corresponding quarter of last year. PAT margin stood at 7.0 per cent in Q2FY23 as compared to 5.8 per cent in Q2FY22.
Basic Earnings per share (EPS) for Q2FY23 stood at Rs 11.28, as compared to Rs 6.93 for Q2FY22.
The company's total revenue for the first half of the current financial year stood at Rs 20,192 crore, as compared to Rs 12,681 crore in the same period last year.
Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) in the first half of FY23 stood at Rs 1,903 crore, as compared to Rs 891 crore during H1 FY22.
EBITDA margin stood at 9.4 per cent in H1FY23 as compared to 7.0 per cent in H1FY22. Net Profit stood at Rs 1,410 crore for H1FY23, as compared to Rs 564 crore in H1FY22. PAT margin stood at 7.0 per cent in H1FY23 as compared to 4.4 per cent in H1FY22.
Commenting on the performance of the company Neville Noronha, CEO & Managing Director, Avenue Supermarts Limited, said, "Q2 FY 2023 saw revenue growth of 35.8 per cent over the corresponding quarter last year. The FMCG and staples segment of the business has performed better than general merchandise and apparel segments. Discretionary items in the non-FMCG segment while recovering have still not come back to pre-pandemic levels."
The inflationary stress is more acute at lower price points in discretionary non-FMCG categories. Average basket values continue to be elevated and footfalls continue to be lower than pre-pandemic levels, Noronha said in a statement.
Our like-for-like growth (LFL) for all stores that are 5 years or older as of the end of September 2022 was at 6.5 per cent annualised / 20.8 per cent absolute (growth for quarter ended September 30, 2022 versus quarter ended September 30, 2019). Within this cohort, we are seeing lesser like-for-like growth in older stores which have significantly higher turnover per square feet than the company average and we have opened a new DMart store close to it. However, we do not see that effect in our younger stores, Noronha added.
