D-Mart’s Q2 Profit Dropped 9.72 % to Rs 659 Crore Despite an 18.50 % Revenue Increase

Avenue Supermarts Ltd has recently unveiled its quarterly financial report for the period from July to September 2023. Its total revenue rose by 18.50% compared to the same period last year. However, the EBITDA margin in Q2FY24 was recorded slightly lower than that reported in Q2FY23 as per the company’s stock exchange filing.

As of September 30, 2023, Avenue Supermarts Limited operates 336 stores with a retail business area of 13.9 million sq. ft across various states in India.

Neville Noronha, who serves as the CEO and Managing Director of Avenue Supermarts Limited, shared his insights on the results. He mentioned that the company achieved a remarkable 18.5% revenue growth in Q2 FY 2024 when contrasted with the corresponding quarter of the prior year. The dip in gross margins, as he explained, was primarily attributable to a reduced contribution from the higher margin segments, such as the General Merchandise and Apparel business. Furthermore, the company expanded its presence by inaugurating 9 new stores during the quarter, consequently elevating the total store count to 336.

Dmart’s Standalone Results

Avenue Supermarts Ltd has released its standalone financial results, reporting that in the quarter ending on September 30, 2023:

• The total revenue reached Rs 12,308 crore, compared to Rs 10,385 crore during the same period the previous year.
• Earnings before Interest, Tax, Depreciation, and Amortization (EBITDA) for Q2FY24 amounted to Rs 1,002 crore, as opposed to Rs 895 crore in the corresponding quarter of the prior year.
• The EBITDA margin stood at 8.1% in Q2FY24, down from 8.6% in Q2FY23.
• The net profit for Q2FY24 was Rs 659 crore, a decrease from Rs 730 crore in the same quarter of the previous year, with a PAT margin of 5.3% in Q2FY24 compared to 7.0% in Q2FY23.
• Basic Earnings per Share (EPS) for Q2FY24 was Rs 10.12, while it was Rs 11.28 for Q2FY23.

For the 1st Half of FY24:

• The total revenue reached Rs 23,892 crore, compared to Rs 20,192 crore in H1FY23.
• EBITDA for H1FY24 was Rs 2,038 crore, an increase from Rs 1,903 crore in H1FY23.
• An EBITDA margin of 8.5% in H1FY24 compared to 9.4% in H1FY23.
• The net profit for H1FY24 was Rs 1,354 crore, a decrease from Rs 1,410 crore in H1FY23.
• A PAT margin of 5.6% in H1FY24 compared to 7.0% in H1FY23.
• Basic EPS for H1FY24 was Rs 20.82, while it was Rs 21.77 for H1FY23.

Regarding the outlook, it is expected that double-digit earnings growth will resume from H2FY24, with the anticipation of improved margins due to the upcoming festive season and enhanced operating efficiency as larger stores mature.

On October 13, Avenue Supermarts’ stock closed at Rs 3920 on the National Stock Exchange, marking a 1.48 % increase from the previous day.