*Avenue Supermarts (DMART) Q2 Results: Net Profit Rises Fourfold Sequentially*
Avenue Supermarts Ltd.’s net profit in the quarter ended Sept. 30 beat estimates as business picked up amid rising vaccination numbers and lower cases. The rise in profitability was also aided by a low base.
Net profit for the operator of the DMart chain of hypermarkets rose 337% quarter-on-quarter to Rs 415.2 crore, according to an exchange filing. That compares with the Rs 390.5-crore consensus estimate of analysts tracked by Bloomberg. On a year-on-year basis, net profit was up by 113%.
Operating profit rose by 313% quarter-on-quarter to Rs 567.7 crore, compared to consensus estimate of Rs 592.6 crore.
Ebitda margin stood at 8.6% as compared to 4.4% in the previous quarter.
Revenue rose 50% quarter-on-quarter to Rs 7,788.9 crore, compared to the consensus estimate of Rs 7,560 crore.
The company, owned by billionaire Radhakishan Damani, had shared a business update on Oct. 2, showing a 52% quarter-on-quarter rise in standalone revenues to Rs 7,649.6 crore. It also added eight new stores during the reported quarter, taking its total count to 246.
Covid-19 related lockdown restrictions were eased further during this quarter," said Neville Noronha, MD & CEO, Avenue Supermarts. "Revenue in the DMart stores grew by 46.6% over the corresponding quarter of last year."