Radhakishan Damani-promoted retail chain Avenue Supermarts (DMart) on Saturday said its standalone profit rose by 24.6 per cent to Rs 586 crore during October-December 2021 quarter year-on-year.
The company has posted standalone net profit of Rs 1,150 crore for the first nine months of the current financial year, which is 57.4 per cent higher when compared with the same period last year.
Total Revenue for the quarter ended December 31, 2021 stood at Rs 9,065 crore, as compared to Rs 7,433 crore in the same period last year, Avenue Supermarts (DMart) said in a statement.
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) in the third quarter of 2021-22 stood at Rs 868 crore, as compared to Rs 691 crore in the corresponding quarter of last year.
EBITDA margin stood at 9.6 per cent in the third quarter of the current financial year as compared to 9.3 per cent in the same quarter of last fiscal. Basic Earnings per share (EPS) for the third quarter of the current financial year stood at Rs 9.04, as compared with Rs 7.26 for the corresponding period of 2020-21.
"Revenue in the DMart stores grew by 22 per cent in this quarter over the corresponding quarter of last year. Overall gross margins are marginally lower due to mix deterioration," said Neville Noronha, CEO & Managing Director, Avenue Supermarts Limited.
"General merchandise and apparel business is consistently seeing relatively lesser sales contribution while essentials and FMCG is doing better. Inflation and lesser opportunities to go out are negatively impacting certain categories more than others. We are seeing higher inflation as an opportunity to make our buying more efficient, our assortment sharper and continue to keep our costs low," Noronha added.
Referring to the challenges due to the COVID-19 pandemic, Noronha said, "Considering the current COVID-19 wave, our sales and footfalls will be dependent on local regulations. We continue to take all precautions to ensure every shopper, employee and partner is operating in a safe environment".
D-Mart follows Everyday low cost - Everyday low price strategy which aims at procuring goods at competitive prices, using operational and distribution efficiency and thereby delivering value for money to customers by selling at competitive prices.
The company's total revenue for the first nine months of the current financial year stood at Rs 22,190 crore, as compared to Rs 16,731 crore in the same period last year. Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) in the first three quarter of 2021-22 stood at Rs 1,759 crore, as compared to Rs 1,130 crore during the corresponding period of last year.
(With inputs from ANI)
