Why DMart disappoints investors
- Ebitda margin contracted by 166 basis points sequentially to 8.6%. Many had expected it to cross 9%.
Avenue Supermarts Ltd’s September quarter (Q2 FY23) results announced on Saturday have failed to enthuse investors, leading to shares dropping 3.6%. Avenue runs the DMart retail store chain. Standalone revenue performance was already disclosed in the quarterly update released earlier this month and therefore all eyes were on margins in Q2. Furthermore, the company’s recovery on some parameters was also disappointing.