D-Mart parent Avenue Supermarts Q4 profit up 47.4% to Rs97 crore
Mumbai: Avenue Supermarts Ltd, parent of the Mumbai-based retailer D-Mart, on Saturday reported a 47.4% year-on-year (y-o-y) rise in net standalone profit for the fourth quarter in the company’s first earnings report since it listed on the Bombay Stock Exchange in March this year.
The retailer’s Q4 profits were at Rs96.66 crore against Rs65.55 crore a year earlier. Its total revenue was up 40.5% to Rs3,120.5 crore from Rs2,219.67 crore in the year-ago period. This puts D-Mart’s profit margin at 3.09% for the quarter.
However, the company’s like to like growth in FY17—meaning the growth in annual sales of stores that have been operating for at least 2 years—remained at similar levels of just over 21%.
D-Mart makes most of its money from selling food, staples, and beverages which makes up more of that half of its total sales. This is a high volume segment but also bring in lowest margins.
This revenue mix remained largely unchanged in FY17. While food’s contribution grew only 0.6% to 53.65%, that from non-food FMCG and general merchandise/apparel fell by less than half a percentage.
“March’17 quarter and financial year 2016-17 annual results has been in line with our expectations,” chief executive officer Neville Noronha said in a statement. “Delivering great value and being consistently relevant to consumers is our most important long term objective,” he said.
Avenue Supermarts also opened 14 more D-Mart stores in the last quarter. This brings the company’s total store area up to 4.1 million square feet over 131 stores, almost half of which are located in Maharashtra.