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Home / Companies / News /  Avenue Supermarts' Q4 consolidated net profit rises 53% to Rs414 crore

MUMBAI : Avenue Supermarts Ltd, which owns and operates supermarket chain D-Mart, on Saturday reported 52.56% rise in consolidated net profit at Rs413.87 crore in the March quarter.

The company had reported a net profit of Rs271.28 crore in the same quarter a year ago.

Consolidated revenue of the Mumbai-based company rose 18.47% to Rs7,411.68 crore compared with Rs6,255.93 crore in the year-ago period.

Earnings before interest, tax, depreciation, and amortization (Ebitda) in Q4FY21 rose 46.80% to Rs612.66 crore, compared with Rs417.33 crore in the corresponding quarter of last year. Ebitda margin stood at 8.27% in Q4FY21 compared with 6.67% in Q4FY20.

"FY21 has been a challenging year for our business. The year began amid a strict lockdown post the emergence of the coronavirus (covid-19) towards the end of the last financial year. The economy gradually opened post May 2020 and the second half of the year was progressing towards recovery. However, a much stronger second wave of covid-19 infections hit the country towards the end of FY21 and has once again resulted in significant disruption to our business as several cities and towns have announced restrictions. " said Neville Noronha, chief executive officer and managing director, Avenue Supermarts Ltd.

"During FY21, we have seen a degrowth across our key financial parameters of revenue, Ebitda and PAT (profit after tax). Our sales mix has also seen a shift towards grocery and FMCG products. Sales from general merchandise and apparel formed 22.90% of our total revenue for the year as compared to 27.31% in the previous year".

"This is a result of consumer preference of need-based / essential goods shopping for a significant period during the year, reduced discretionary spending and significant restrictions on selling non-essentials during the early part of the year. This has also impacted our margins during the year. However, Q4 margins did indicate revival of discretionary spends not seen in previous 3 quarters".

We adopted all safety protocols as mandated and recommended by the authorities to safeguard the health and well-being of our customers and employees. We continue to follow these at all our premises. Our construction activity was impacted during the first half of the year. We gradually commenced our store construction activity from the second half of the year and opened 22 new stores during the year, " added Noronha.

"Q4FY21 began with cautious optimism as coronavirus infections had reduced and significant restrictions had been lifted across the economy. The commencement of vaccination for the population was also building strong optimism for the future. However, beginning of March 2021 the number of infections significantly increased across India. Since then local restrictions have progressively increased in April and May," said Noronha.

On Friday, the company's scrip on BSE closed 0.37% higher at 2,888.75, while the benchmark index, Sensex gained 0.52% to close at 49,206.47 points.

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