DMart Q1 revenue jumps 18%; net profit up by 2% at Rs 659 Cr

Billionaire investor Radhakishan Damani-promoted Avenue Supermarts, which operates hypermarket chain DMart, recorded a 2% year-on-year (YoY) rise in net consolidated profit at Rs 659 crore for the June quarter, compared to Rs 643 crore in the corresponding quarter of last fiscal.

The Mumbai-based company on Saturday declared its results for the first quarter of the financial year ending June 2023 (Q1FY24). 

The food and grocery retailer’s total revenue for the quarter increased by 18.2 % YoY (year-on-year) at Rs 11,865 crore, as compared to Rs 10,038 crore in the same period last year. 

Standalone total revenue for the quarter ended June 30, 2023 was Rs 11,584 crore, as compared to Rs 9,807 crore for the same period last year while net profits were at Rs 695 crore, as compared to Rs 680 crore previously.

Operating profit, calculated as earnings before interest, tax, depreciation and amortization (EBITDA) was Rs 1,036 crore, as compared to Rs 1,008 crore clocked in the year-ago period.

EBITDA margin stood at 8.9% in Q1FY24 as compared to 10.3% in Q1FY23.

“Overall gross margins are lower compared to same period in the previous year, primarily due to lower sales contribution of apparel and general merchandise. However, general merchandise contribution is recovering and trending towards pre- pandemic levels,” CEO and Managing Director Neville Noronha said.

The company opened three new stores in the quarter, taking the total count to 327.

On Friday, Avenue Supermarts closed at Rs 3,840 on the NSE, up 0.48% from the previous day.

Consent to give ESOP

The board has given consent to offer employee stock options, subject to the approval of shareholders at the ensuing annual general meeting, it said in another exchange filing. 

Under the ESOP scheme 2023, DMart plans to offer up to 1,500,000 options, which on exercise would entitle an equal number of equity shares of Rs 10 each of the company.

“Options shall be granted to eligible employees who are in General Management “G” Grade and who are in employment of the company as on the date of grant,” the company said.