Capitaline

Results 09-Jul-22

Analysis

Avenue Supermarts

PAT up 574% YoY to Rs 641.6 crore in Q1FY2023

On consolidated basis

Quarter ended June 2022 compared with Quarter ended June 2021.

Net sales (including other operating income) of Avenue Supermarts has increased 93.67% to Rs 10038.07 crore.

Operating profit margin has jumped from 4.33% to 10.04%, leading to 349.75% rise in operating profit to Rs 1,008.24 crore. Purchase of finished goods cost fell from 86.76% to 83.76%. Employee cost decreased from 2.86% to 1.78%. Other expenses fell from 6.02% to 4.48%.

Other income fell 7.37% to Rs 29.14 crore. PBIDT rose 305.80% to Rs 1037.38 crore. Provision for interest rose 58.86% to Rs 17.22 crore.

PBDT rose 316.73% to Rs 1020.16 crore. Provision for depreciation rose 34.72% to Rs 144.74 crore.

Profit before tax grew 537.32% to Rs 875.42 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 232.53 crore, compared to Rs 42 crore. Effective tax rate was 26.56% compared to 30.58%.

Minority interest decreased 300% to Rs -0.04 crore. Net profit attributable to owners of the company increased 574.14% to Rs 642.93 crore.

Promoters’ stake was 74.99% as of 30 June 2022 ,compared to 74.99% as of 30 June 2021 .

Management Commentary

D-Mart follows Everyday low cost - Everyday low price (EDLC-EDLP) strategy which aims at procuring goods at competitive price, using operational and distribution efficiency and thereby delivering value for money to customers by selling at competitive prices.

Commenting on the performance of the company Mr. Neville Noronha, CEO & Managing Director, Avenue Supermarts Limited, said:

"DMart (Brick and Mortar) Business Overview

We ended Q1 FY2023 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. We cumulatively opened 110 stores over the last 3 financial years which never got an opportunity to operate in normal circumstances over the last 2 years. There are stores that are larger, better designed and have capacity to handle larger scale revenue. These stores have done extremely well in this quarter. This is also the first full quarter of zero disruption from Covid-19 pandemic. Q1 like Q3 is a good revenue as well as profit enhancing period due to back to school/college season and the onset of monsoons.

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. Our discretionary contribution mix of this quarter is yet to reach the pre-pandemic levels but is getting better. High inflation over the last two years hides the possible stress in volume growth for discretionary categories of mass consumption. Value growth through positive volume growth of discretionary products in relatively older stores is the best reflection of the strength of the DMart business, competitive impact and the local economy. We have made good progress in this area during the quarter. We will need another quarter of uninterrupted operations to understand this better.

DMart Ready

DMart Ready continues to deepen its presence across 12 cities in India. We are doing more of the same and continue to focus on the larger cities. Smaller towns are pilots and we are constantly learning from the feedback we get from our customers in these towns."

Avenue Supermarts : Consolidated Results

	Quarter ended			Year ended
Particulars	202206	202106	Var.(%)	202203	202103	Var.(%)
Net Sales (including other operating income)	10,038.07	5,183.12	93.67	30,976.27	24,143.06	28.30
OPM (%)	10.04	4.33	572 bps	8.07	7.22	85 bps
OP	1,008.24	224.18	349.75	2,498.50	1,743.05	43.34
Other Inc.	29.14	31.46	-7.37	117.49	196.21	-40.12
PBIDT	1,037.38	255.64	305.80	2,615.99	1,939.26	34.90
Interest	17.22	10.84	58.86	53.79	41.65	29.15
PBDT	1,020.16	244.80	316.73	2,562.20	1,897.61	35.02
Depreciation	144.74	107.44	34.72	498.08	414.16	20.26
PBT	875.42	137.36	537.32	2064.12	1483.45	39.14
Share of Profit/(Loss) from Associates	0	0	-	0	0	-
PBT before EO	875.42	137.36	537.32	2064.12	1483.45	39.14
EO Income	0	0	-	0	0	-
PBT after EO	875.42	137.36	537.32	2064.12	1483.45	39.14
Taxation	232.53	42	453.64	571.72	384.02	48.88
PAT	642.89	95.36	574.17	1492.4	1099.43	35.74
Minority Interest (MI)	-0.04	-0.01	-300.00	-0.15	-0.06	-150.00
Net profit	642.93	95.37	574.14	1492.55	1099.49	35.75
P/(L) from discontinued operations net of tax	0	0	-	0	0	-
Net profit after discontinued operations	642.93	95.37	574.14	1492.55	1099.49	35.75
EPS (Rs)*	9.93	1.47	574.14	23.04	16.97	35.75

* EPS is on current equity of Rs 647.77 crore, Face value of Rs 10, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database

Previous News

Avenue Supermarts to convene board meeting
( Corporate News - 27-Apr-24 10:24 )

Avenue Supermarts Q1 PAT soars 137% YoY to Rs 95 cr
( Hot Pursuit - 12-Jul-21 09:22 )

Avenue Supermarts opens new store in Nalasopara, Maharashtra
( Corporate News - 14-May-24 16:06 )

Avenue Supermarts consolidated net profit rises 137.89% in the June 2021 quarter
( Results - Announcements 10-Jul-21 16:06 )

Avenue Supermarts announces board meeting date
( Corporate News - 01-Jan-22 10:13 )

Avenue Supermarts to announce Quarterly Result
( Corporate News - 06-Jan-24 11:31 )

DMart revenue jumps 14% YoY in Q2 FY25
( Hot Pursuit - 04-Oct-24 10:56 )

DMart standalone revenue rises 22% YoY in Q3FY22
( Hot Pursuit - 03-Jan-22 09:19 )

Avenue Supermarts issues commercial paper for Rs 50 cr
( Corporate News - 21-Dec-18 17:33 )

Avenue Supermarts jumps after Q2 revenue rises 46.6% YoY
( Hot Pursuit - 04-Oct-21 09:18 )

Avenue Supermarts says nearly 50% DMart stores closed due to covid-19 restrictions
( Hot Pursuit - 11-Apr-20 10:11 )