DMart Q3 Result Highlights:
- Avenue Supermarts reported a 6.7% increase in consolidated profit after tax for Q3 of FY23, reaching ₹589.68 crore.
- The company’s revenue from operations also saw a 25% increase, reaching ₹11,569.05.
- The EBITDA in Q3FY23 was at Rs.965 crore, compared to Rs.866 crore in the same period of the previous year.
- The EBITDA margin in Q3FY23 was 8.3%, lower than the 9.4% in Q3FY22.
- DMart opened four new stores in the December quarter.
- The CEO and Managing Director of Avenue Supermarts, Neville Noronha, attributes a decline in gross margin percentage to a change in product mix.
- Avenue Supermarts plans to launch a pharmacy shop-in-shop through a subsidiary, Reflect Healthcare and Retail Private Limited, at one of its stores.
- DMart’s share price has dropped 8% in the past month and 2% in the past six months.
DMart Q3 Result Details:
DMart (Avenue Supermarts) consolidated profit after tax increased by 6.7% to ₹589.68 crore in the quarter ending December 2022, compared to a profit of ₹552.56 in the same quarter the previous year.
The company, owned by Radhakishan Damani and running the DMart chain, saw a 25% increase in revenue from operations to ₹11,569.05 compared to ₹9,217.76 in the corresponding quarter of the previous year.
The earnings before interest, tax, depreciation, and amortization (EBITDA) in Q3FY23 were Rs.965 crore, compared to Rs. 866 crore in the corresponding quarter of the previous year.
The EBITDA margin in Q3FY23 was 8.3%, compared to 9.4% in Q3FY22. DMart added four stores in the December quarter.
CEO and Managing Director Neville Noronha stated that Q3 saw revenues grow by 24.7% over the corresponding quarter of the previous year, with the FMCG and staples segment outperforming the general merchandise and apparel segments. However, the gross margin percentage decline over the corresponding quarter of the previous year is a reflection of this mix change, and discretionary non-FMCG sales did not perform as well as expected in this quarter.
The EBITDA in Q3FY23 stood at Rs.965 crore, as compared to Rs. 866 crore in the corresponding quarter of last year. The EBITDA margin stood at 8.3% in Q3FY23 as compared to 9.4% in Q3FY22. DMart added four stores in the December quarter.
CEO and Managing Director Neville Noronha stated that Q3 saw revenues grow by 24.7% over the corresponding quarter of the previous year, with the FMCG and staples segment outperforming the general merchandise and apparel segments. However, the gross margin percentage decline over the corresponding quarter of the previous year is a reflection of this mix change, and discretionary non-FMCG sales did not perform as well as expected in this quarter.
CEO and Managing Director Neville Noronha added that the company is in the process of starting a pharmacy shop-in-shop through one of its subsidiaries, Reflect Healthcare and Retail Private Limited, at one of its stores. This is another pilot that will complement the brick and mortar business using existing store infrastructure.
In the quarter ending September 2022, Avenue Supermarts reported a nearly 29% increase in net profit after tax (PAT) to ₹730.48 crore.
In the previous quarter, Radhakishan Damani’s company reported total comprehensive income at ₹727.19 crore, compared to ₹561.16 crore in Q2FY22.
The DMart or Avenue Supermarts share price ended at ₹3,855 per share on Friday. The DMart share price has been under selling pressure in the last six months. In the last one month, Avenue Supermarts’ share has dropped by over 8% and in the last six months, it has lost nearly 2% on NSE.
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