Avenue Supermarts Ltd (DMart) Q4 Results 2022
Supermarket chain DMart, led by RK Damani posted its Q4 FY22 results on May 14, 2022.
The company’s profit attributable to the shareholders of the company was up 2.8% YoY (Year on Year) to Rs 420 crore. On a sequential basis, the company’s profit was down 22.8% QoQ (Quarter on Quarter).
The company’s revenue from operations was up 18.5% YoY to Rs 8,786 crore. The revenue from operations was down 4.6% QoQ. Consequently, DMart’s total income was also down on a sequential basis by 4.5% to Rs 8,819 crore. The total income on a YoY basis was up 18.2%.
The dip in DMart’s sequential numbers is largely attributable to the rise of the Omicron COVID variant in January 2022. Moreover, post the Omicron wave, the eCOmmerce business has slowed down on its growth trajectory. However, the momentum on the brick-and-mortar stores has picked up. The March 2022 numbers are well above the March 2021 numbers, particularly due to the FMCG business recovering well.
More about DMart Q4 Results 2022
DMart now has 214 stores that are 2 years or older, with 21 new stores being added in Q4 FY22. As of March 31, 2022, the Company had 284 operating stores with Retail Business Area of 11.5 million square feet.
DMart’s stock closed in the red at Rs 3,230.60 per share after taking a 1.22% dip after the end of the intraday trading session on May 13, 2022 ahead of the company’s quarterly results.
Highlights of Avenue Supermarts Q4 Results
- Net Profit stood at Rs. 427 crore for Q4 FY22, as compared to Rs. 414 crore in the corresponding quarter of last year
- PAT margin stood at 4.8% in Q4FY22 as compared to 5.5% in Q4FY21
- Total Revenue for the quarter ended March 31, 2022 stood at Rs. 8,786 crore, as compared to Rs. 7,412 crore in the same period last year
- Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) in Q4FY22 stood at Rs. 739 crore, as compared to Rs. 613 crore in the corresponding quarter of last year
- EBITDA margin stood at 8.4 % in Q4FY22 as compared to 8.3% in Q4FY21
- 21 stores were added in Q4FY22, 50 stores were added in FY22
- Basic Earnings per share (EPS) for Q4FY22 stood at Rs 6.59, as compared with Rs. 6.39 for Q4FY21
Misses of Dmart Quarterly Results
- PAT down 22.8% QoQ to Rs 426 crore from Rs 552 crore in the previous quarter
- Revenue from operations was down 4.6% QoQ to Rs 8,786 crore from Rs 9,217 crore in the previous quarter
- Total income down 4.5% QoQ to Rs 8,819 crore from Rs 7,459 crore in Q3 FY22
What the Management says
Neville Noronha, CEO & Managing Director of Avenue Supermarts Limited, said that January 2022 started extremely well but then the Omicron wave of Covid‐19 reduced the momentum. These waves typically hurt the high margin and discretionary items more. As is the trend of the past, recovery does take 40‐50 days after restrictions are removed or anxiety of a Covid wave recedes.
March 2022 month again had robust recovery and very satisfactory like for like growth vis a vis March 2021. In general, the quarter performance and past two waves of stop‐start‐stop give us extreme confidence on the resilience of the business to recover in the short term.
Other things to know about DMart Results
- The company’ P/E ratio is at 190.34 against the industry average of 206.88
- DMart’s P/B ratio is at 17.18 against the industry average of 5.47