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DMart Owner Avenue Supermarts Reports 17% Rise in Q3 Net Profit to ₹691 Crore

Analysts suggest that DMart's stock presents a buying opportunity, with the potential to reach ₹4,200 within the next three to six months.

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:

MetricAmount (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 Stores341
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.

The Indian Bugle
The Indian Buglehttps://theindianbugle.com
A team of seasoned experts dedicated to journalistic integrity. Committed to delivering accurate, unbiased news, they navigate complexities with precision. Trust them for insightful, reliable reporting in the dynamic landscape of Indian and global news.
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