D-Mart Q1 Profit Increases Severalfold to Rs. 642.89 Crore, Almost Doubling Sales

Updated: Jul 17

A "very good recovery" in total sales and a low YoY base allowed Avenue Supermarts Ltd, which owns and runs the retail chain D-Mart, to report a more than six-fold increase in their consolidated net profit for the quarter that ended on June 30, 2022. According to a BSE filing by Avenue Supermarts, the business reported a net profit of Rs 95.36 crore in the April-June quarter of last year.

When compared to the equivalent quarter last fiscal year, its operating revenue increased by 93.66% to Rs 10,038.07 crore during the period under review. The grocery chain owned by the Damani family claims that its Q1FY23 performance cannot be compared to those of the corresponding quarter in the previous fiscal year since that period was affected by the second wave of Covid-19.

Neville Noronha, CEO & Managing Director of Avenue Supermarts, commented on the results: "Overall sales have recovered extremely well. However, because of the second wave of Covid-19 at that time, this quarter's performance cannot be compared to the same period last year. Avenue Supermarts' overall costs were Rs 9,191.79 crore, up 81.03 percent from Rs 5,077.22 crore in the prior quarter of FY 2022–23. Noronha stated the following while discussing DMart's expansion in the brick and mortar market from April to June: "We cumulatively opened 110 stores over the last three financial years, which never got the chance to operate in normal circumstances over the last two years. These are larger, better-constructed stores with the ability to handle higher levels of revenue. This quarter has been very successful for these stores. In the 2022–23 quarter from April to June, D-Mart opened 10 new locations.

The Covid-19 epidemic has caused exactly zero interruption for the first full quarter. Due to the start of the monsoon season and back-to-school/college season, Q1 is an excellent time to increase revenue and profits, he said.

Although the general retail and apparel categories experienced somewhat better growth than the previous quarter, the interruptions brought on by Covid-19 and its acute inflationary impact remain a concern. "While still below pre-pandemic levels, our discretionary contribution mix has improved this quarter. According to him, "value growth through positive volume growth of discretionary products in relatively older stores is the best reflection of the strength of the DMart business, competitive impact, and the local economy. High inflation over the last two years hides the potential stress in volume growth for discretionary categories of mass consumption. Additionally, its e-commerce company, DMart Ready, kept expanding its footprint across 12 Indian cities. "We continue to work on the bigger cities and do more of the same. Smaller towns are our test markets, and we are always improving based on the feedback we receive from their residents, he said.

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