Avenue Supermarts, operator of the DMart retail chain, reported a robust set of results for the December quarter, delivering double-digit growth in profit, revenue and operating earnings.
Net profit for the quarter rose 17 per cent year-on-year to Rs 856 crore, compared with Rs 733 crore in the same period last year. Revenue from operations increased 13.3 per cent to Rs 18,101 crore from Rs 15,972 crore a year earlier. In its business update released earlier, the company had reported standalone revenue of Rs 17,612 crore for the quarter, reflecting year-on-year growth of about 13 per cent.
Operating performance also strengthened, with earnings before interest, tax, depreciation and amortisation (EBITDA) climbing 20.2 per cent year-on-year to Rs 1,463 crore, up from Rs 1,217.5 crore in the corresponding quarter last year.
EBITDA margin improved to 8.1 per cent, compared with 7.7 per cent in the same period of the previous financial year, indicating better operating leverage and cost control.
The company also announced a leadership update, stating that the term of its Managing Director and Chief Executive Officer, Ignatius Navil Noronha, will conclude on 31 January.
The strong third-quarter performance follows steady growth in the preceding quarter as well. In the September quarter, Avenue Supermarts had reported revenue of Rs 16,676.3 crore, up 15.5 per cent year-on-year, while profit rose 3.9 per cent to Rs 685 crore.
Shares of the Mumbai-based retailer closed 0.30 per cent higher at Rs 3,801 in Friday’s trading session, reflecting a muted but positive market response to the results.
Investors will now watch for further commentary on store expansion plans, demand trends and the company’s leadership transition as it enters the final quarter of the financial year. |
