Radhakishan Damani-led Avenue Supermarts, which owns and operates supermarket chain of DMart retailers, on Saturday reported a 16.3 per cent year-on-year (YoY) unaudited consolidated net profit jump to Rs 446.95 crore for the third quarter of monetary year 2020-21. DMart’s profit for the quarter ended December 31, FY20 stood at Rs 384.01 crore. The total consolidated earnings for the corporation was also up 11.3 per cent from Rs 6,815 crore to Rs 7,587.32 crore for the duration of the mentioned period although operating income was Rs 7,542 crore for Q3 FY21. Avenue Supermarts subsidiaries incorporated Avenue E-commerce, Align Retail Trade, Nahar Seth & Jogani Developers, Avenue Food Plaza, and Reflect Wholesale and Retail.
“The quarter has seen further improvement in our business and financial metrics. Our overall sales and sales mix is now trending very close to our usual times except for specific customer consumption changes post Covid-19,” mentioned Neville Noronha, CEO & Managing Director, Avenue Supermarts. Among the categories taking more time to recover for DMart have been apparel, laundry, footwear, travel and other relevant out of dwelling usage categories, according to Noronha, even as its “agile OPEX management” along with a great surge in festival buying for DMart permitted it to provide a considerably superior quarter than the preceding two quarters.
However, December month didn’t do as nicely for the corporation as the festive months of October and November. Its 162 retailers, which are two years and older, did about 96 per cent of December 2019 sales in December 2020. Moreover, restricted shop operations in specific cities just after Diwali simply because of evening curfews and weekend closure resulted in considerably bigger declines in such retailers in comparison to the identical period final year, according to Noronha.
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DMart’s Earnings just before Interest, Tax, Depreciation and Amortization (EBITDA) for the December quarter was Rs 689 crore vis-à-vis Rs 597 crore for the year-ago period. The EBITDA margin was 9.1 per cent in Q3 versus 8.8 per cent in Q3 FY20 although fundamental Earnings per share (EPS) for Q3 FY21 stood at Rs 6.90, up from Rs 6.14 for Q3 FY20. The total consolidated expenditures for the duration of the December quarter also improved from Rs 6,325.03 crore for Q3 FY20 to Rs 6,977.88 for Q3 FY21.
The corporation had soft-launched its e-commerce app DMart Ready for the duration of the December quarter in pick pin codes of Ahmedabad, Bengaluru, and Hyderabad, Noronha mentioned. It had also leased some portion of the space at some of its brick-and-mortar retailers to Avenue E-Commerce Limited (AEL) to start its e-commerce organization in the 3 cities. “Post Covid-19 environment is creating opportunities to launch DMart Ready in more cities. However, we will continue with our approach of small trials, reviews and controlled acceleration for DMart Ready.”