RK Damani-led Avenue Supermarts Ltd. released their financial result for the September-December quarter of the current financial year. The company reported a 24% year on year (YoY) increase in its PAT at Rs 552.5 crore as against Rs 447 crore in the year-ago period.
The hypermarket chain also reported a 22.2% YoY jump in its revenue from operations to Rs 9,217 crore from Rs 7,542 crore in the corresponding quarter in the last financial year. Although the company’s total income increased from Rs 7,587 crore in Q3 FY21 to Rs 9,243 crore in the current quarter, its income from other sources was reduced by over 40% YoY from Rs 45 crore to Rs 25 crore.
The overall increase in the results is majorly on account of high sales recorded due to the festival season, Diwali buying, and the latest panic-buying among people after the Omicron scare. Avenue Supermarts share closed at Rs 4,731.35 per share on January 7, Friday at 3:30 PM, up by 0.55% during the intraday trading session ahead of its quarterly results(Q3).
Neville Noronha, CEO & Managing Director said, “Revenue in the DMart stores grew by 22.0% in this quarter over the corresponding quarter of last year. Overall gross margins are marginally lower due to mix deterioration. General merchandise and apparel business is consistently seeing relatively lesser sales contribution while essentials and FMCG is doing better. Inflation and lesser opportunities to go out are negatively impacting certain categories more than others. We are seeing higher inflation as an opportunity to make our buying more efficient, our assortment sharper and continue to keep our costs low. Considering the current Covid wave, our sales and footfalls will be dependent on local regulations. We continue to take all precautions to ensure every shopper, employee and partner is operating in a safe environment”.
Avenue Supermarts Ltd runs a chain of hypermarkets and retail stores across India called DMart which offers a range of products following the ‘everyday low cost- everyday low price’ strategy. They procure goods in wholesale quantities at competitive prices, use efficient logistics and operations to sell them to retail customers at a competitive price. DMart currently operates 263 stores across the country.
Avenue Supermarts Ltd has the largest market capitalization among its peers at over Rs 3 lakh crore. The company has the highest P/E ratio at 278 against the industry average of -474.
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