DMart Q1FY24 Results: Net profit rises 2 % to ₹659 crore, revenue up 18 %; check details

DMart Q1FY24 Results: Ace investor Radhakishan Damani-backed Avenue Supermarts, which operates the retail chain DMart, announced its April-June quarter results for the current fiscal, reporting a consolidated net profit of ₹658.71 crore, up two percent from ₹642.89 crore in the year-ago period.

The hypermarket chain operator reported an 18.2 per cent rise in consolidated revenue from operations at ₹11,865.44 crore, compared to ₹10,038.07 crore in the corresponding period last year.  The Basic Earnings per share (EPS) for the quarter under review stood at Rs.10.14, compared to Rs.9.93 in the year-ago period, according to a regulatory filing by the firm to the stock exchanges.

The operating profit, calculated as earnings before interest, tax, depreciation and amortization (EBITDA), rose 2.8 per cent to ₹1036 crore, compared to ₹1008 crore reported in the same quarter last year. Meanwhile, margins came in at 8.9 percent versus 10.3 percent YoY.

DMart follows Everyday low cost - everyday low price (EDLC-EDLP) strategy which aims at procuring goods at competitive prices, using operational and distribution efficiency and thereby delivering value for money to customers by selling at competitive prices.

‘’Overall gross margins are lower compared to same period in the previous year, primarily due to lower sales contribution of apparel and general merchandise. However, general merchandise contribution is recovering and trending towards prepandemic levels. We opened three new stores during the quarter. Our total stores now stand at 327,'' said Neville Noronha, CEO & Managing Director, Avenue Supermarts.

The company's board has also given consent to offer employee stock options, subject to the approval of shareholders at the ensuing annual general meeting. Under the Employee Stock Options Scheme (ESOP) 2023, DMart plans to offer up to 1,500,000 options, which on exercise would entitle an equal number of equity shares of ₹10 each of the company.

“Options shall be granted to eligible employees who are in General Management “G” Grade and who are in employment of the company as on the date of grant,” the company said in its exchange filing.

In January-March quarter for the financial year 2022-23, Avenue Supermarts had reported that its revenue from operations for the quarter ended March 2023, stood at ₹10,337 crore, logging 20 per cent jump from ₹8,606.09 crore revenue from operations reported in the corresponding quarter last fiscal. The company management had claimed that total number of stores as on March 31, 2023 stood at 324.

On July 14, shares of DMart settled 0.61 per cent higher at ₹3,845.50 apiece on the BSE.