NEW DELHI: Avenue Supermarts (D-Mart) on Saturday reported a 2.1 per cent year-on-year (YoY) rise in profit after tax (PAT) at Rs 257 crore for the December quarter.
The company had reported Rs 252 crore profit in the year-ago quarter.
The flattish growth in profit was primarily due to gross margin reduction on account o price cuts, the food & grocery retailer told BSE.
Revenue for the quarter jumped 33.2 per cent YoY to Rs 5,451 crore.
While brokerages were largely expecting the Radhakishan Damani-led firm to report 30 per cent-plus growth in sales, they were expecting the retailer to report profit growth in 10-18 per cent range.
The company said its Ebitda for the quarter rose 7.5 per cent YoY to Rs 453 crore. Ebitda margin contracted 200 basis points to 8.3 per cent in December quarter against 10.3 per cent in the year-ago quarter. PAT margin for the quarter at 4.7 per cent shrank 140 basis points over 6.1 per cent in the same quarter last year.
The company added 4 stores in during the quarter.
“Operating cost inched upward due to preloading of certain expenses primarily around capability building across infraastructure and people,” said CEO & MD Neville Noronha.
“We also overspent a little to manage the festive season better through longer operating hours. We continue to operate longer hours in certain stores after the festive season,” Neville said.
Source: Economic Times