Avenue Supermarts’ Q2 net profit up 18.3% at Rs 2.26 billion YoY

The company added four D-Mart stores during the Q2 FY18Avenue Supermarts, which operates food and grocery retail chain D-Mart, has posted an 18.3 per cent year-on-year (YoY) rise in net profit for the second quarter of the current fiscal year at Rs 2.26 billion, on the back of a 39 per cent rise in total revenue.The revenue from operations rose by 39 per cent to Rs 48.72 billion, as against Rs 35 billion in the corresponding quarter last fiscal.Ebitda stood at Rs 3.9 billion, up 22.6 per cent YoY. Net profit for the quarter was Rs 2.26 billion compared to Rs 1.9 billion in the corresponding quarter last year. However, PAT margin came in at 4.6 per cent for Q2FY19, compared to 5.4 per cent in Q2FY18. The Ebitda margin fell from 9.1 per cent in Q2FY18 to 8 per cent in Q2FY19. Basic earnings per share (EPS) in Q2FY19 stood at Rs 3.62 against Rs 3.06 last year.The company added three stores during the quarter. “During the quarter, we continued to bring prices down for our customers across categories. Our revenue growth in Q2 is a reflection of these price cuts,” Neville Noronha, CEO and Managing Director of Avenue Supermarts, said in a statement.D-Mart operates on an “everyday low cost, everyday low prices” model that aims at procuring goods at a competitive price using operational and distribution efficiency. Shoppers become loyal to the low prices.This is somewhat similar to Walmart.For the first half of the year, the company posted a net profit of Rs 4.76 billion as against Rs 3.6 billion in H1FY18. PAT margin for H1FY19 came in at 5 per cent, compared to 5.1 per cent in H1FY18. Revenue for H1 grew 32.7 per cent YoY to Rs 94.32 billion.At an operational level, the Ebitda for H1 was at Rs 8.12 billion, compared to Rs 6.21 billion in the corresponding period last year. Ebitda margin for H1FY19 stood at 8.6 per cent, compared to 8.7 per cent in H1FY18.
Source: Business Standard