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Avenue Supermarts reports 36% revenue jump in Q2

Avenue Supermarts’ shares closed at Rs 4,476.50 apiece on the BSE on Tuesday, up 1.15% from the previous day’s close.

Avenue Supermarts reports 36% revenue jump in Q2
The total number of stores as of September 30 stood at 302. (IE)

Avenue Supermarts, the operator of DMart retail stores, reported a 35.8% year-on-year (y-o-y) jump in revenue from operations to Rs 10,384.7 crore for the quarter ended September, the company said in a regulatory filing.

The total number of stores as of September 30 stood at 302.

The company’s revenue from operations during 2QFY23 has almost doubled as compared to the same period in FY2020 and FY2019.

The company had posted a profit after tax of Rs 679.64 crore in 1QFY23, up 490% y-o-y on the back of a 94% improvement in sales at Rs 9,806.89 crore coupled with an operating margin that grew 590 basis points to 10.3%.

However, the company’s revenue per sq ft was at Rs 8,389, around 90% below pre-Covid levels and the reason for it being lower discretionary demand due to inflationary pressures.

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“General merchandise and apparel categories, although saw better traction than the previous quarter, still has some overhand of Covid-19-led disruptions and acute inflationary impact. Discretionary contribution mix is also yet to reach pre-pandemic levels,” the company had said in a statement during April-June results.

While the company has given only a business update for the July-September quarter, the financial results are yet to be released where the company’s commentary on the impact of inflation on demand trends, and festival season sales would be closely watched.

Avenue Supermarts’ shares closed at Rs 4,476.50 apiece on the BSE on Tuesday, up 1.15% from the previous day’s close.

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