Avenue Supermarts Ltd, which owns and operates retail chain D-Mart, on Saturday reported a sharp rise in its consolidated net profit to Rs 642.89 crore for the April-June quarter. Profit rose sixfold from Rs.
Avenue Supermarts operating income nearly doubled to Rs 10,038.07 crore for the quarter from Rs 5,183.12 crore in the corresponding quarter of the previous fiscal year. According to the Damani family-sponsored supermarket chain, D-Mart’s Q1FY23 results are not comparable to the corresponding quarter of the previous fiscal year, which was hit by the second wave of COVID-19. Commenting on the results, Neville Noronha, CEO and Managing Director of Avenue Supermarts said: “Overall sales have recovered very well. However, due to the second wave of Covid-19 during this period, this quarter’s performance is not comparable to the same period last year.
Avenue Supermarts’ total spending was Rs 9,191.79 crore, up 81.03 per cent in the first quarter of FY2022-23 from Rs 5,077.22 crore in the same quarter.
Regarding DMart’s growth in the brick-and-mortar segment from April to June, Noronha said: “We have opened a total of 110 stores in the last three financial years, which have never had the opportunity to operate under normal conditions in the last two years. These are businesses that are bigger, better designed and have the potential to handle huge revenues. These businesses have performed very well this quarter.”
D-Mart added 10 stores in April-June quarter 2022-23.
This is also the first full quarter without disruption from the COVID-19 pandemic. “Q1 like Q3 is a good revenue and earnings period due to the start of the school/college season and the monsoon,” he said.
The general merchandise and apparel categories saw relatively better traction than in the previous quarter, but are still slightly more impacted by the disruptions caused by Covid-19 and greater inflationary impact.
“Our discretionary contribution mix for this quarter has not yet reached pre-pandemic levels but is improving. High inflation over the past two years largely reflects the potential drag on discretionary consumption categories from volume growth,” he added. Hiding,” he said, “price increases from positive volume growth of discretionary products in relatively older stores best reflect the strength of the DMart business, the impact on competitiveness and the local economy.”
E-commerce store DMart Ready is also expanding its presence in 12 Indian cities. “We are doing more and continue to focus on larger cities. Smaller cities are pilot projects and we’re constantly learning from the feedback we get from our customers in those cities,” he added.
(Edit: Ajay Vaishnav)
Initial publication: July 09, 2022 at 4:18 pm IST
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