On Saturday, Avenue Supermarts, the operator of DMart, announced a notable 18.6% rise in consolidated total revenue, reaching INR 12,624.37 crore for the second quarter (Q2) concluded on September 30, 2023. This signifies an increase from the INR 10,638.33 crore revenue recorded during the equivalent period in the prior fiscal year, as stated in the company’s regulatory filing.
Nevertheless, the retail chain experienced a 9% decrease in its consolidated net profit, amounting to INR 623.35 crore during Q2 FY24, in contrast to INR 685.71 crore in the equivalent quarter of the prior year. Additionally, its PAT (Profit After Tax) margin was 4.9% in Q2FY24, a decline from the 6.4% seen in Q2FY23.
As per the BSE filing, the Earnings before Interest, Tax, Depreciation, and Amortization (EBITDA) for Q2 FY24 was reported at INR 1,005 crore, showing an increase from INR 892 crore in the corresponding quarter of the previous year. The EBITDA margin for Q2 FY24 was 8.0%, a slight decrease from 8.4% recorded in Q2 FY23.
Commenting on the company’s quarterly performance, Neville Noronha, CEO and managing director of Avenue Supermarts Limited, said, “Q2 FY 2024 saw revenue growth of 18.5% as compared to the corresponding quarter of last year. Our gross margins continue to be lower compared to the same period in the previous year due to lesser contribution from the higher margin General Merchandise and Apparel business.”
Moreover, the company disclosed that it inaugurated 9 additional stores in the quarter, bringing its total store tally to 336 as of September 30, 2023. The company specializes in an extensive array of products, with a particular emphasis on food, non-food items (FMCG), general merchandise, and apparel across various product categories.
At present, D-Mart adheres to an Everyday Low Cost – Everyday Low Price (EDLC-EDLP) strategy. This strategy is centered on acquiring goods at competitive prices, leveraging operational and distribution efficiency to ultimately offer customers value for their money by selling products at competitive prices.