D-Mart Q1 FY24 results: Profit after tax up by nominal 2.3% to Rs 695 cr, revenue rises 18%

Avenue Supermarts Ltd, which runs the retail chain DMart, reported a nominal rise of 2.3 per cent in net profit for Q1 FY24 despite registering double-digit overall growth in revenue. The profit rose to Rs 695.36 crore up 2 per cent from Rs 642.89 crore in the year-ago period.

The hypermarket chain operator reported an 18% YoY growth in revenue for the quarter to Rs 11,584.4 crore. The growth in Q1 FY23 was Rs 10,038.07 crore a year ago. The revenue in the April-June quarter rose 12 per cent from Rs 10,594.11 crore in the last quarter of FY23.

Standalone total revenue for the quarter ended June 30, 2023 rose 18 per cent at Rs. 11,584 crore, as compared to Rs 9,807 crore in the same quarter last fiscal.

The company's operating profit, which is earnings before interest, taxes, depreciation and amortisation (EBITDA), was up by 2.8 per cent on year to Rs 1,036 crore as compared to Rs1,008 crore in the corresponding quarter of last year. Whereas, EBITDA margin stood at 8.7 per cent in Q1FY24 as compared to 10.0 per cent in Q1FY23.

Neville Noronha, CEO & Managing Director, said: “Overall, gross margins are lower compared to the same period in the previous year, primarily due to lower sales contribution of apparel and general merchandise.”

He added that general merchandise contribution is recovering and trending towards pre-pandemic levels. He also said that the company opened three new stores, taking the total store count to 327.

Besides, the company board has decided to offer employee stock options, subject to the approval of shareholders at the ensuing annual general meeting.

Under the ESOP scheme 2023, the company plans to offer up to 1,500,000 options, which on exercise would entitle an equal number of equity shares of Rs 10 each of the company.

The company shares closed at Rs 3,840 on the National Stock Exchange, up 0.48 per cent from Thursday.

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