D-Mart owner Avenue Supermarts' net profit rises 17% to Rs 691 crore in Q3FY24

DMart owner Avenue Supermarts, led by Radhakishan Damani, reported a net profit of Rs 690.61 crore in October-December quarter in FY24. The company's consolidated net profit for the September period was Rs 623.35 crore, which was 9.09 per cent less than from Rs 685.71 crore recorded in the same quarter last year.  

In a regulatory filing, the company said its total income in Q3 FY24 rose to Rs 13,291.76 crore up from Rs 12,353.35 crore in Q2 FY24. In Q3 FY23, the company's total income was Rs 11,345.09 crore.

Earnings before interest, taxes, depreciation and amortization or EBITDA during the quarter grew by 16% YoY to Rs 1,119.89 crore. However, operating margin dipped marginally to 8.25% from 8.34% a year ago.

At the standalone level, the net profit of the company increased by 15% YoY, reaching Rs 737 crore, while the revenue saw a growth of 17% to Rs 13,247 crore.

Looking at the nine months ended in December, the consolidated net profit rose by almost 3% to Rs 1,972 crore, and the revenue grew by 18% to Rs 38,062 crore. The EBITDA margin stood at 8.3%, down from 8.9% a year ago.

DMart's total expense during the quarter, including finance cost, was Rs 12,656.46 crore.

The company said it staff expenses rose to Rs 234.31 crore from Rs 192.31 crore a year ago.

As of December end, the D’Mart hypermarket chain operator had 341 stores, implying a net addition of five stores during the Q3 quarter. This was 4 less than the previous quarter when the company added 9 stores.

"This time the festive season sales were lower than expected in Non-FMCG. Within FMCG, agri-staples (ex-edible oil) are going through significantly high inflation." said Neville Noronha, CEO & Managing Director.

“Within FMCG, agri-staples (ex-edible oil) are going through significantly high inflation,” he added.

Earlier, Axis Securities said the firm is likely to report a 25.1% rise in Q3 net profit at Rs 738 crore in Q3 against Rs 623 crore in the December 2022 quarter.

Nuvama Institutional Equities expected the firm to post a 14% year-on-year rise in profit to Rs 730 crore on a standalone basis. Dmart's EBITDA margin estimate is seen at 8.4% (Q3FY23: 8.6%, Pre covid Q3 average: 9%) with EBITDA at Rs 1110 crore, up 14% year-on-year.

Brokerage Motilal Oswal said that the company's consolidated revenue may rise 17% YoY to Rs 13,600 crore. Standalone revenue per square feet is likely to climb 4% year-on-year to Rs 37,800. The brokerage expects annual store additions of 38 in FY24. 

New appointments 

The company has given its approval for the appointment of Harishchandra M. Bharuka as an Independent Director of the Company. Bharuka will serve in this role for a period of five years starting from January 13, 2024. With a career spanning over 40 years, Bharuka brings extensive experience in leading multinational businesses in India and has gained significant global exposure.

On Friday, NCR-based Migsun Group said that DMart has bought 47,000 sq ft of space at its Sector 22 Rohini project in Delhi for Rs 108 crore. 

On Friday (January 12), shares of Avenue Supermarts closed at Rs 3,843 on NSE, up 0.57 per cent from the previous day.

Also read: Avenue Supermarts Q3 earnings preview: Profit likely to climb 25% on double-digit rise in revenue