D-Mart competes with Reliance Retail, Big Bazaar, EasyDay in the offline space even as competition from online players including BigBasket, Grofers along with Amazon Pantry and Flipkart Supermart have increased in the past few years.
Avenue Supermarts, which owns D-Mart chain of hypermarkets, reported 53.3 per cent year-over-year (YoY) increase in net profit to Rs 394 crore from Rs 257 crore in the corresponding quarter FY19 while total revenue increased 23.9 per cent YoY to Rs 6,752 crore up from Rs 5,451 crore in the same period last year. “Our topline growth was in line with our estimates. PAT Margin improvement partly reflects the benefit due to a revision in corporate tax rates. We have opened 20 stores during the first 9 months of this fiscal,” said Neville Noronha, CEO and Managing Director, Avenue Supermarts in the quarterly filing.
The Finance minister Nirmala Sitharaman had announced cut in the base corporate tax rate to 22 per cent from 30 per cent in September last year. D-Mart competes with Reliance Retail, Big Bazaar, EasyDay in the offline space even as competition from online players including BigBasket, Grofers along with Amazon Pantry and Flipkart Supermart have increased in the past few years. “India’s over $500 billion grocery market out of which a mere 0.2 per cent is online (~$1.2 billion overall and around $1 billion considering only hyperlocal grocery). Given this massive potential, we expect the online market to continue chugging along at 50 per cent growth rate for the next few years, which will be served by various models, including category specialists and narrow and wide supermarkets,” research firm RedSeer said in its report last year.
Avenue Supermarts EBITDA stood at Rs 593 crore — 30.8 per cent annual growth. For the nine months ending December 2019, the company’s standalone profit and revenue were Rs 1,063 crore up by 44.9 per cent YoY and Rs 18,481 crore increased by 24.2 per cent from last year same period respectively. D-Mart said it “follows everyday low cost – everyday low price strategy which aims at procuring goods at a competitive price, using operational and distribution efficiency and thereby delivering value for money to customers by selling at competitive prices.” From launching the first store in Mumbai in 2002, the company as of December last year has expanded with 196 stores across Maharashtra, Gujarat, Daman, Andhra Pradesh, Karnataka, Telangana, Tamil Nadu, Madhya Pradesh, Rajasthan, NCR, Chhattisgarh and Punjab.