Sat. Oct 1st, 2022

Avenue Supermarts Limited (Dmart), helmed by Radhakrishna Damani, posted a net profit of 3.14 percent in the quarter ending March 31, 2022. The business that runs the food and grocery chain Dmart said on Saturday that its consolidated net profit for the fourth quarter was Rs 427 crore, up from Rs 414 crore in the previous quarter.
Dmart’s overall income increased 18.53 percent year on year to Rs 8,786 crore, up from Rs 7,412 crore the previous year. Avenue Supermarts’ PAT margin was 4.8 percent in Q4 FY22, down from 5.5 percent in Q4 FY21, according to a regulatory filing on Saturday, May 14. In the fourth quarter of FY22, the in EBITDA was Rs 739 crore, up from Rs 613 crore the previous year. The EBITDA margin in Q4 FY22 was 8.4%, up from 8.3% in Q4 FY21, according to a regulatory filing on the same day.

Avenue Supermarts CEO and managing director Neville Noronha commented on the findings, saying that the firm had started the month of January ‘very’ well, but the Omicron wave damaged it. “January 2022 got off to a great start, but the Omicron wave of Covid19 slowed things down by the middle of the month. The high margin and discretionary products are usually the worst hit by these waves. Recovery takes 40–50 days once limitations are removed or anxiety from a Covid wave subsides, as has been the case in the past. “Because Omicron was a gentler wave, it had a far lesser detrimental impact,” he explained.

“March 2022 had a strong comeback and extremely good like-for-like growth compared to March 2021. In summary, the quarter’s performance and the previous two rounds of stopstartstop give us high confidence in the business’s ability to recover quickly,” Noronha noted.

Avenue Supermarts, or Dmart, said its FMCG business was doing well. “Our clients in this sector are clearly seeing the value offer,” it said in the filing. It is difficult to say if the relative lower growth in the discretionary non-FMCG group is attributable to a secular change over time, the company stated. Avenue Supermarts stated in the petition that this was attributable to a change in e-commerce, inflation, or a much larger Covid-related negative economic impact for specific customers.

“Only if there are no additional Covid shutdowns/restrictions for at least two more quarters will we be able to provide that qualitative judgement.” The firm, which is funded by Radhakrishna Damani, added, “The high inflation environment is helping us control our expenses better and also give substantially better value to buyers.”

“Post Omicron wave, the Ecommerce industry has slowed down its development trajectory,” the company stated of its e-commerce subsidiary Dmart Ready. However, we are generally pleased and enthusiastic about this venture. Every day, we discover something new. DMart Ready has had another fantastic year. This year’s top line sales were marginally higher than last year.”

By adele rose

Adele Rose is the senior editor and employee of WGBS Pvt Ltd Digital wing.

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