D-Mart Q1 profit increased sixfold to Rs 642.89 cr, sales nearly doubled

Avenue Supermarts Ltd, which owns and operates retail chain D-Mart, said on Saturday it had increased its consolidated net profit sixfold to Rs 642.89 crore for the quarter ended June 30, 2022, helped by a “very good recovery ” in overall sales and a weak comparative basis over the year.

The company had posted a net profit of Rs 95.36 crore in the April-June quarter a year ago, Avenue Supermarts said in an ESB filing.

Its operating income increased by 93.66% to reach Rs 10,038.07 crore in the quarter under review from Rs 5,183.12 crore in the corresponding quarter of the previous fiscal year.

According to the Damani family-promoted supermarket chain, its Q1FY23 results are not comparable to the corresponding quarter last fiscal year, which was impacted by the second wave of Covid-19.

Commenting on the results, Avenue Supermarts CEO and Managing Director, Neville Noronha, said: “There has been a very good recovery in overall sales. However, this quarter’s performance is not comparable to the same period last year due to the second wave of Covid-19. during this time.”

Total expenditure for Avenue Supermarts was Rs 9,191.79 crore, up 81.03% in the first quarter of FY2022-23, from Rs 5,077.22 crore in the corresponding quarter.

While talking about DMart’s growth in the brick and mortar segment in April-June, Noronha said, “We opened 110 stores in the last three fiscal years, which never had the opportunity to operate. under normal circumstances over the past two years. These are stores that are larger, better designed and have the ability to handle a larger scale of revenue. These stores have done extremely well in this quarter.

D-Mart added 10 stores in the April-June 2022-23 quarter.

It is also the first full quarter without any disruption due to the Covid-19 pandemic.

“The first quarter like the third is a good period for revenues as well as a period of improving profits due to the start of school / university and the onset of monsoons,” he said.

Its general merchandise and apparel categories saw relatively better traction than in the previous quarter, but still have some overhang from the disruption caused by Covid-19 and the acute inflationary impact.

“Our discretionary contribution mix this quarter has yet to reach pre-pandemic levels but is improving. Strong inflation over the past two years masks possible volume growth stress for consumer discretionary categories of mass,” he said, adding that “the growth in value through positive volume growth of discretionary products in relatively older stores is the best reflection of the strength of the DMart business, the competitive impact and the local economy”.

Its DMart Ready e-commerce business also continued to expand its presence in 12 cities in India.

“We’re doing more of the same and continuing to focus on big cities. Small towns are pilots and we’re constantly learning from the feedback we get from our customers in those cities,” he said.

(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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