Promoted by Radhakishan Damani and family, Avenue Supermarts Ltd, the parent company of supermarket retail chain DMart reported its second-quarter earnings on Saturday (October 16, 2021).
The publicly owned company posted an astounding 110% YoY rise in net profits to Rs 417.8 crore in the quarter under review. Net profits stood at Rs 199 crore in the year-ago period.
For the Mumbai-headquartered company, consolidated revenue also marched alongside the net profits. The company posted a 46.79% rise in consolidated revenues YoY. The consolidated revenues stood at Rs 7,789 crore as of 30 September 2021 against Rs 5,306 crore in Q2 FY22.
The company informed that its total expenses also grew 43.63% in the second quarter at Rs 7,248.74 crore, compared to Rs 5,046.69 crore a year ago.
For each of its shares, Avenue Supermarts Ltd earned Rs. 6.93, i.e., its Basic Earnings per share (EPS) for the second quarter came out to be Rs 6.93, which a year ago was Rs 3.25.
The soft launch of DMart Ready in Surat and Vadodara is a positive step. But the company continue to have major presence in the southern parts of the country. DMart has its market presence in States including Maharashtra, Gujarat, Andhra Pradesh, Madhya Pradesh, Karnataka, Telangana, and Rajasthan. It still needs a lot of doing to exploit the consumer base up North.
Neville Noronha, CEO & Managing Director, Avenue Supermarts informed the relaxation from covid protocols helped them get back on track.
He further added that 187 of the DMart stores are older than two years. And collectively, they posted a growth of 23.7% in September.
He also said over 96% of the workforce in DMart is fully vaccinated, abiding by the COVID-19 protocols in their premises.