January 13, 2024 : Avenue Supermarts, the parent company of the popular retail chain DMart, reported a robust 17% increase in its consolidated net profit for the October-December quarter of fiscal year 2023-24. The company’s net profit stood at ₹690.61 crore, a notable rise from ₹589.68 crore reported in the corresponding period of the previous year.
Key Financial Highlights for Q3 FY24:
| Metric | Amount (in Crores) |
|---|---|
| Consolidated Net Profit | ₹690.61 |
| Consolidated Revenue from Operations | ₹13,572.47 |
| Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) | ₹1,120 |
| Total Stores | 341 |
| Basic Earnings Per Share (EPS) | ₹10.62 |
The company’s consolidated revenue from operations also witnessed a substantial increase, climbing to ₹13,572.47 crore from ₹11,569.05 crore in the same period last year. The basic earnings per share (EPS) for the December quarter showed a positive trend, reaching ₹10.62 compared to ₹9.10 in the year-ago period.
Despite a challenging market environment, DMart’s EBITDA for Q3 FY24 reached ₹1,120 crore, up from ₹965 crore in the corresponding quarter of the previous fiscal year. The EBITDA margin remained steady at 8.3%.
Operational and Expansion Highlights:
- The company added five new stores during the December quarter, bringing the total store count to 341.
- DMart’s total income in Q3 FY24 rose to ₹13,291.76 crore, marking an increase from ₹12,353.35 crore in Q2 FY24.
- Staff expenses increased to ₹234.31 crore from ₹192.31 crore a year ago.
- The hypermarket chain operator witnessed a net addition of five stores during Q3 FY24.
Industry Analysts’ Expectations:
Industry analysts had varying expectations regarding DMart’s Q3 performance. Axis Securities anticipated a 25.1% rise in net profit, while Nuvama Institutional Equities expected a 14% YoY rise in profit on a standalone basis.
Future Outlook:
Despite the lower-than-expected festive season sales in non-FMCG and significant inflation in agri-staples within FMCG, DMart remains optimistic about future growth.
New Appointments:
The company approved the appointment of Harishchandra M. Bharuka as an Independent Director for a five-year term starting January 13, 2024.
Market Response:
On January 12, shares of Avenue Supermarts closed at ₹3,843 on NSE, marking a 0.57% increase from the previous day.
Analyst Recommendations:
Analysts suggest that DMart’s stock presents a buying opportunity, with the potential to reach ₹4,200 within the next three to six months.
In conclusion, Avenue Supermarts continues to demonstrate resilience and growth in a competitive market, focusing on strategic expansion and navigating challenges effectively.
Disclaimer: The information provided in this article is based on publicly available data, and readers are advised to conduct further research before making investment decisions.
