Mumbai: Avenue Supermarts Ltd, which runs the D-Mart supermarkets chain, on Friday posted a 65.77% jump in its net profit on account of overall increase in margin mix and improved operating costs. Its net profit stood at Rs251.76 crore on a standalone basis for the quarter ended 31 December, compared to Rs151.87 crore in the corresponding quarter a year ago.
D-Mart’s total income in the quarter under review stood at ₹ ,108.47 crore, up 22.71%, against ₹ 3,347.85 crore in the year-ago period, Avenue Supermarts said.
“The company has seen a 65.8% jump in net profits due to gross margin increase and improved operating costs," Avenue Supermarts chief executive Neville Noronha said.
“Growth in this (December 2017) quarter appears to be lower as compared to previous year quarter because of demonetisation base effect. Growth in December 2016 quarter was significantly higher than the growth of FY16-17," the company said in its BSE filing.
Total revenue for nine months ended December stood at Rs11,201 crore, as compared to Rs8,770 crore in the same period last year. Its net profit between April and December grew by 60% to Rs618 crore, as compared to Rs386 crore for the same period last year.
On Friday, the Avenue Supermarts board approved the acquisition of 50.79% paid-up share capital of Avenue E-Commerce, an associate company of Avenue Supermarts Ltd. Post acquisition, Avenue E-Commerce shall become a wholly-owned subsidiary of Avenue Supermarts, the company said.
When asked about the e-commerce business, Noronha said that it is still in its pilot stage in Mumbai.
D-Mart added five new stores in the quarter, and 10 stores in the nine months from April to December. “More stores are in the pipeline, and typically the last quarter of the year has maximum store openings. We are concentrating on the southern and western markets," Noronha said. At present, the company operates 141 stores in Maharashtra, Gujarat, Andhra Pradesh, Karnataka, Telangana, Tamil Nadu, Madhya Pradesh, Rajasthan, Delhi NCR, Punjab and Chhattisgarh.
Avenue Supermarts had a blockbuster listing in March last year that put founder Radhakishan Damani in India’s richest 20 club. On Thursday, its shares rose 1.19% to Rs1,156.95 while the benchmark Sensex fell 0.31% to 36,050.44 points.