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DMART Q1 results: Standalone PAT jumps nearly 6 folds to ₹680 cr, margins strong | Mint – Mint

Avenue Supermarts, listed as DMart on Saturday recorded strong earnings for the quarter ending June 2022 (Q1FY23) period. DMART registered a standalone net profit of 679.64 crore in Q1FY23 rising by 490.32% or 5.90 times compared to the same quarter a year ago when profits stood at 115.13 crore. PAT margin stood at 6.9% in Q1FY23 as compared to 2.3% in Q1FY22. Q1 PAT jumped over 45.73% from 679.64 crore in the preceding quarter. 

Standalone revenue stood at 9806.89 crore in the quarter under review, rising by 94.90% from 5,031.75 crore in the corresponding period of last year. Sequentially, revenue soared by 13.95% from 8,606.09 crore in Q4FY22.

Further, standalone (EBITDA) in Q1FY23 stood at 1,008 crore climbing by over 4.5 folds as compared to 221 crore in the corresponding quarter of last year. EBITDA margin stood at 10.3% in Q1FY23 as compared to 4.4% in Q1FY22.

On a consolidated basis, total revenue in Q1FY23 stood at 10,038 crore, as compared to 5,183 crore in the same period last year. Net Profit advanced to 643 crore for Q1FY23, as compared to merely 95 crore in the corresponding quarter of last year. PAT margin stood at 6.4% in Q1FY23 as compared to 1.8% in Q1FY22

In Q1FY23, consolidated EBITDA came in at Rs.1,008 crore, as compared to Rs.224 crore in the corresponding quarter of last year. EBITDA margin stood at 10.0 % in Q1FY23 as compared to 4.3% in Q1FY22.

Neville Noronha, CEO & Managing Director, Avenue Supermarts Limited, said, “We ended Q1 FY 2023 with growth across all key financial parameters. There has been a very good recovery in overall sales. However, this quarter’s performance is not comparable to the same period last year due to the second wave of Covid-19 during that time. We cumulatively opened 110 stores over the last 3 financial years which never got an opportunity to operate in normal circumstances over the last 2 years. These are stores that are larger, better designed and have capacity to handle larger scale of revenue.”

“These stores have done extremely well in this quarter. This is also the first full quarter of zero disruption from Covid-19 pandemic. Q1 like Q3 is a good revenue as well as profit enhancing period due to back to school/college season and the onset of the monsoons,” Noronha said.

General Merchandise and Apparel categories saw relatively better traction than the previous quarter but still has some overhang of the Covid-19 led disruptions and acute inflationary impact, Noronha added that, high inflation over the last two years hides the possible stress in volume growth for discretionary categories of mass consumption. Value growth through positive volume growth of discretionary products in relatively older stores is the best reflection of the strength of the DMart business, competitive impact, and the local economy.

“We have made good progress in this area during the quarter. We will need another quarter of uninterrupted operations to understand this better,” Noronha added.

On DMART Ready, Noronha said, it continues to deepen its presence across 12 cities in India. He added, “We are doing more of the same and continue to focus on the larger cities. Smaller towns are pilots and we are constantly learning from the feedback we get from our customers in these towns.”

On BSE, DMART shares closed at 3,942.05 apiece up by 92.40 or 2.40%. Currently, the company’s market cap is around 2,55,356.02 crore.

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