Avenue Supermarts Q2 profit surges 63% to ₹730 crore
It was ₹449 crore a year back, it said in a stock regulatory filing.
PremiumDMart chain of retail stores operator Avenue Supermarts on 15 October reported a 62.7 percent rise in standalone post-tax profit of ₹730 crore for the quarter ended September 2022.
It was ₹448.9 crore a year back, it said in a stock regulatory filing. PAT margin stood at 7 per cent in Q2FY23 as compared to 5.8 percent in Q2FY22.
In the financial results, released by the firm, the net revenue also came in higher at ₹10,385 crore for the second quarter, which is an increase of 36 percent compared to ₹7,650 crore in September 2021 quarter. The revenue is higher by 6 percent from ₹10,038 crore.
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For the September quarter, Avenue Supermarts' EBITDA margin stood at 8.6 percent as compared to 8.8 percent in Q2FY22, which is ₹895 crore, as compared to ₹670 crore in the corresponding quarter of last year.
"The FMCG and staples segment of the business has performed better than general merchandise and apparel segments. Discretionary items in the non-FMCG segment while recovering have still not come back to pre-pandemic levels. The inflationary stress is more acute at lower price points in discretionary non-FMCG categories," Neville Noronha, CEO and Managing Director said.
Apart from this, the firm said that the total revenue for the first half of FY23 came in at ₹20,192 crore, as compared to ₹12,681 crore a year back. EBITDA margin stood at 9.4 percent as against 7 percent in the same period, which is ₹1,903 crore in H1FY23 as compared to ₹891 crore during H1FY22, the company said.
On segregation, the food category contributed to 54.75 percent of the revenue, non-foods 20.5 percent, while general merchandise and apparel contributed the rest 24.75 percent.
"As and when footfalls increase, we assume we should be inching towards our pre-pandemic contributions for apparel and general merchandise sales," Noronha said.
"Like-for-like growth (LFL) for all stores that are 5 years or older as of end of September 2022 was at 6.5 percent annualized/20.8 percent absolute," he said. The LFL indicates the growth in sales as recorded by the same number of stores a year ago.
"The newer stores have revenues per store significantly lower than the older stores."
Till the report was filed, Avenue Supermarts Ltd was trading 0.1% lower or 4.15 down at 4303.25 in BSE.
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