Avenue Supermarts share price rises over 6% on strong Q1 earnings

Avenue Supermarts share price was trading higher today after the operator of popular retail chain D- Mart clocked 31.83% rise in consolidated net profit for the quarter ended June 2019.

Avenue Supermarts share price rose up to 6.46% to 1,447 compared to the previous close of 1359.20 on BSE. The large cap stock opened with a gain of 5.21% at 1430 on BSE. Avenue Supermarts share price has lost 9.56% during the last one year and fallen 11.43% since the beginning of this year. The share price closed 4.89% or 66 points higher at 1,425 level on BSE.  

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Net profit rose 31.83 per cent year-on-year (YoY) jump in consolidated net profit at Rs 323 crore for the June quarter compared with Rs 245 crore in the same quarter last year. The firm logged a 27.07 per cent rise in consolidated revenue at Rs 5,815 crore compared with Rs 4,576 crore in the same period last year. Earnings before interest, tax, depreciation and amortisation (EBITDA) for the food and grocery retailer stood at Rs 597 crore in the first quarter compared with Rs 423 crore in the year-ago. EBITDA margin rose to 10.3 per cent from 9.2 per cent year-on-year basis.

Profit after tax margin also improved from 5.3 per cent in Q1 FY19 to 5.5 per cent in Q1 FY20. Basic earnings per share (EPS) jumped to Rs 5.18 from Rs 3.93 during the same period.

7 of 19 brokerages rate the stock "buy" or ' outperform', one "hold", six "underperform" and five "sell", according to analysts' recommendations tracked by Reuters.

Avenue Supermarts share price closed above its 50-day and 200 day moving average of 1346 and 1405 levels.

Neville Noronha, CEO and Managing Director, Avenue Supermarts Limited, said, "Revenue growth was in line with our expectations. Gross margin was slightly ahead of our expectations and our continued operational efficiency has resulted in higher PAT margins. As we have said in the past, Q1 margins are not usually a reflection of the entire year. We opened 8 stores in this quarter, large part of which are a spillover from the previous quarter." 

Edited by Aseem Thapliyal