Avenue Supermarts Q1 net profit jumps sixfold to Rs 680 crore

Source: Economic Times

Controller and owner of D-mart supermarket network, Avenue Supermarts Ltd. on July 9 had a total standalone value of ₹680 crore in Q1 of the current financial year. If we relate this value to that of the total value recorded by the company for the same quarter of the previous year (which was ₹115 crore), the company made a profit almost 6 times that of the last year.

The gross income generated by the business has increased by around 95% every year and it recorded a net income of ₹9,807 crore as of June 30 this year (Q1 of the current financial year) while the net income generated last year during the same period stood at ₹5,032.

In the first quarter of the current financial year, EBITDA reached an amount of ₹1,008 crore which was recorded at ₹221 crore in the previous year during the same period. The provision for EBITDA remained at around 10% in the first quarter of the current financial year, compared to 4% (in total) in the corresponding quarter of the previous year.

The company’s PAT abatement has held steady around 7% in the first quarter of the current year compared to the first quarter margin of the prior year which held around 2%. While the main EPS for the first quarter of the current financial year remained at ₹10.39 compared to that of the first quarter of the previous financial year which stood at ₹1.78.

Combining all the above, it can be said that the gross revenue generated by the company in the first quarter of FY23, which was released on June 30, remained at around ₹10,038 crore from ₹5,183 crore for the corresponding quarter of the last financial year.

The company’s combined EBITDA in the first quarter of FY22 was ₹1,008 crore compared to ₹224 crore in the first quarter of FY22.

Noting the company’s achievements, the Managing Director and Managing Director said that Avenue Supermarts Ltd completed its first quarter of the current financial year with development around very important economic frameworks. The company has seen a great improvement in its overall sales. But the balance sheet for this period should not be linked to that of 2021 because the country was experiencing the 2nd wave of Coronavirus at the time, he added.

Commodities and accustomed apparel classes saw comparatively better suction than last quarter, however, it still has few sticks away from the disruption caused by the coronavirus and the intense inflationary effect, said the company in a press release.

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