DMart Q3 results: Net profit rises 16% YoY to Rs 447 crore; Ebitda margin expands 30 bps to 9.1%

DMart Q3 results: Net profit rises 16% YoY to Rs 447 crore; Ebitda margin expands 30 bps to 9.1%

NEW DELHI: Avenue Supermarts (DMart) on Saturday reported a 16 per cent YoY rise in consolidated net profit at Rs 447 crore for the December quarter. The Radhakishan Damani-led chain of hypermarkets reported a profit of Rs 384 crore in the same quarter last year.

Total revenue for the quarter came in at Rs 7,542 crore, up 10.76 per cent over its year-ago quarter’s Rs 6,809 crore.

Ebitda for the quarter stood at Rs 689 crore compared with Rs 597 crore in the year-ago quarter.

Ebitda margin for the quarter expanded to 9.1 per cent from 8.8 per cent the year-ago quarter.

CEO & Managing Director Neville Noronha said, the quarter saw further improvement in business and financial metrics.

“Our overall sales and sales mix is now trending very close to our usual times except for specific customer consumption changes post Covid-19. Apparel, laundry, footwear, travel and such relevant out of home usage categories are taking more time to recover,” he said.

Noronha said that an agile operating expenses management along with a good surge in festival shopping allowed his company to deliver a significantly better quarter than the previous two quarters.

That said, December month didn’t trend as well as the festival months of October and November, he pointed out.

“Two years and older DMart stores did 96 per cent of December 2019 sales in the month of December 2020. We have 162 stores that are 2 years or older. Restricted store operations in certain cities post Diwali due to night curfews and weekend closure led to significantly larger declines in those stores versus same period last year,” he said.

Noronha said that lesser trips and higher basket values continue to be the norm. There is a general reduction in basket values compared to peak pandemic levels. That said, they continue to be relatively higher than pre Covid-19 levels.

“We also continue to face inconsistent supplies from the non FMCG sector. Raw material prices are also going up. Availability in certain categories is likely to get worse before getting better. This could therefore have an impact on sales mix and margins in the near term,” he said.

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