DMart Q3 results: Net profit rises 7% to Rs 589 cr; revenue increases 25.5%

Avenue Supermarts, which operates the retail chain DMart, on Saturday reported 9% rise in standalone net profit at Rs 641 crore for the quarter ended December 31, 2022. It reported standalone net profit of Rs 586 crore in the year-ago period. The company's consolidated net profit rose 7% to Rs 589 crore in Q3FY23 from Rs 553 crore in the year-ago period while its consolidated revenue rose 25.5% to Rs 11,569 crore.

The company's standalone revenue increased 25% to Rs 11,305 crore, as compared to Rs 9,065 crore in the same period last year.

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) in Q3FY23 stood at Rs 974 crore, as compared to Rs 868 crore in the corresponding quarter of last year. EBITDA margin stood at 8.6% in Q3FY23 as compared to 9.6% in Q3FY22.

On Friday, the company's scrip on BSE closed 1.28% lower at Rs 3,862.20.

"Q3 saw our revenues grow by 24.7% over the corresponding quarter of last year. FMCG and staples segment continued to outperform the general merchandise and apparel segments. Gross margin percentage decline over the corresponding quarter of last year is a reflection of this mix change.  Discretionary non-FMCG sales did not do as well as expected in this quarter. We have further expanded our e-Commerce operations in 4 new cities while continuing to deepen our presence in the existing 18 cities. Our operations now span across 22 cities in India," said Neville Noronha, CEO & Managing Director, Avenue Supermarts Limited.

"We are in the process of commencing a pharmacy shop-in-shop through one of our subsidiary (Reflect Healthcare and Retail Private Limited) at one of our stores. This is yet another pilot that will complement our brick and mortar business using our existing store infrastructure," he added.