Net profit rises 8% to Rs 460 crore, revenue up 21%

The company reported a 21 percent YoY rise in consolidated revenue from operations at Rs 10,594 crore against Rs 8,786 crore year ago

Avenue Supermarts, which operates the retail chain DMart, said on May 13 that its net profit for the quarter ended March stood at Rs 460 crore, an eight percent rise from Rs 427 crore reported in the year-ago period.

Net profit came in at Rs 590 crore in Q3FY23, Avenue Supermarts said in an exchange filing.

The company reported a 21 percent YoY (year-on-year) rise in consolidated revenue from operations at Rs 10,594 crore against Rs 8,786 crore year ago. Revenue stood at Rs 11,569 crore in the December 2022 quarter.

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Earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter stood at 772 crore, increasing 4 percent YoY while EBITDA margin contracted 110 bps to 7.3 percent against 8.4 percent recorded in Q4FY22.

In the fourth quarter, DMart expanded its retail chain by opening 18 new stores, bringing the total number of stores as of March 31, 2023 to 324. Throughout the 2022-23 fiscal year, the company has added a total of 40 stores to its network.

For the full year, revenue increased 38 percent to Rs 42,840 crore against 30,976 crore reported in FY22 with net profit for the full year ending March 2023 coming in at Rs 2,379 crore, up 59 percent compared to Rs 1,493 crore in FY22.

Earnings before interest, taxes, depreciation, and amortization surged by 46 percent, while operating margins improved to 8.5 percent from 8.1 percent in FY2021-22.

On May 12, the scrip closed 0.80 percent down on the National Stock Exchange at Rs 3,675, with benchmark Nifty closing 0.097 percent higher at 18,314.80 points.