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

DMart owner Avenue Supermarts Ltd will report its December quarter earnings today. The Radhakishan Damani-led 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, according to Axis Securities. Revenue is seen climbing 18% to Rs 13,651 crore in the last quarter against Rs 12,624 crore in the December 2022 quarter.  

EBITDA is likely to rise 19.6% to Rs 1154 crore in the December 2023 quarter against Rs 1005 crore in the Q3 of the previous fiscal, said Axis in its Q3 earnings preview.  

Nuvama Institutional Equities expects 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 expects consolidated revenue to 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. As of December, the company had a total of 341 stores. 

In its third-quarter update on January 2, the firm reported a standalone revenue of Rs 1,3247.3 crore, rising 17.2% from the year-ago period. Revenue growth for the quarter ended December 2023 came at 21.2%. 

For the quarter ended September 30, 2023, Avenue Supermarts logged a standalone revenue from operations at Rs 12,307.72 crore compared to Rs 10,384.66 crore on a year-on-year basis. 

The company's consolidated net profit in Q2 was Rs 623.35 crore, a 9.09 percent decrease from the Rs 685.71 crore recorded in the same quarter last year. 

The stock ended 0.56% higher at Rs 3840.10 on Friday. Total 7139 shares of the firm changed hands amounting to a turnover of Rs 2.73 crore. Market cap of the firm rose to Rs 2.49 lakh crore.  The share hit a 52-week low of Rs 3292.65 on March 16, 2023 and rose to a 52 week high of Rs 4203 on December 7, 2023.       .  

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