DMart Q1 results: Net profit jumps 132% to Rs 115 cr; revenue rises 31%

DMart operator Avenue Supermarts on Saturday reported 132% jump in standalone net profit at Rs 115 crore for the June quarter. It was Rs 50 crore in the year-ago period.

Total revenue rose 31% to Rs 5,032 crore as compared to Rs 3,833 crore in June 2020.

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) in Q1FY22 stood at Rs 221 crore, as compared to Rs 109 crore in the corresponding quarter of last year. EBITDA margin stood at 4.4% in Q1FY22 as compared to 2.8% in Q1FY21.

Basic Earnings per share (EPS) for Q1FY22 stood at Rs 1.78, as compared to Rs 0.77 for Q1FY21.

Neville Noronha, CEO & Managing Director, Avenue Supermarts Limited, said: “Q1FY22 saw a much stronger second wave of Covid-19 restrictions. We lost significantly more days or had higher restriction on number of hours of store operations compared to the same period last year.

Noronha said the company's inventory is gradually moving towards normal levels and that construction activity has also commenced at all of its sites.

"Revenues have grown by 31% over the corresponding quarter of last year. This is because the lockdown periods were at different times in different regions during the quarter. Some cities announced early lockdowns and continue to have stringent measures in place even now while some cities eased the restrictions within 3-4 weeks after their early lockdown. There were also cities which announced lockdowns much later and are now in the process of relaxing them. Despite lesser hours of operations this time, we had more customer footfalls than in the same period last year and this has translated into higher sales. One of the key reasons for this is that even though restrictions on operations were more severe, personal mobility was relatively less stringent than last time. Additionally, we also had 22 new stores that were opened post Q1 FY 2020-21. We have not seen any significant impact on our supply chain during the quarter," said Noronha.

On Friday, the company's scrip on NSE closed trading 0.27% lower at Rs 3,380.