Avenue Supermarts, which operates retail chain DMart, on Monday reported a 43.4% year-on-year rise in net profit to Rs 251 crore in Q1FY19, driven by the company’s focus on offering everyday low price products and lower impact of interest costs.
Avenue Supermarts, which operates retail chain DMart, on Monday reported a 43.4% year-on-year rise in net profit to Rs 251 crore in Q1FY19, driven by the company’s focus on offering everyday low price products and lower impact of interest costs. The company reported results above estimates.
The company’s revenues grew 27% year-on-year to Rs 4,559.4 crore. According to a Bloomberg consensus, the company was expected to report a net profit of Rs 218.6 crore on revenue of Rs 4,357.4 crore.
The company’s earnings before interest, taxes, depreciation and amortisation (Ebitda) increased 39% year-on-year to `423 crore. The Ebitda margin came in higher at 9.3% against 8.4% last year. Neville Noronha, chief executive officer and managing director, said, “This quarter has seen slightly lower gross margins, which is a result of our conscious effort to maintain or bring down prices for consumers across categories. Improved profit after tax for the quarter is due to better operational performance and lower impact of interest cost as compared to last year June quarter. Q1 PAT tends to be better than full-year results and hence must not be seen as a reflection of the entire year trend.”
The company opened its first store in 2002. As of June 30, the company had 157 stores operational with retail business area of 5 million sq ft across Maharashtra, Gujarat, Daman, Andhra Pradesh, Karnataka, Tamil Nadu, Madhya Pradesh, Rajasthan, the National Capital Region, Chhattisgarh and Punjab.
Shares of Avenue Supermarts on Monday closed at `1,592.65 on the Bombay Stock Exchange, up 1.59% from its previous close.