Avenue Supermarts, the operator of DMart retail stores, announced a 21% growth in sales, from Rs 8,606.09 crore in the previous year to Rs 10,337 crore this year. The company’s net profit also saw an increase of 8% to Rs 505.21 crore from Rs 466.35 crore in the same period last year.
However, the company’s sales and net profit declined from the previous quarter ended in December. The sales decreased from Rs 11,304.58 crore to Rs 10,337 crore, and the net profit dropped from Rs 641.07 crore to Rs 505.21 crore. This may be attributed to the impact of the COVID-19 pandemic and the lockdowns imposed by the government.
The company’s costs increased from Rs 7,999.03 crore in the same period last year to Rs 9,709.20 crore. This could be due to the increase in operating costs, including salaries, rent, and other expenses.
Avenue Supermarts’ margins fell from 8.6% to 7.6% year on year, a decrease of 7.6%. The company’s EBITDA, which represents profits before interest, taxes, depreciation, and amortisation, increased by 5.5% to Rs 783 crore.
During the board of directors’ meeting held on May 13, the results were approved by Avenue Supermarts.
DMart stores, which are owned by Mumbai-based Avenue Supermarts, offer a wide range of products, including food, toiletries, cosmetics, kitchenware, bed and bath linen, and appliances. The enterprise was founded by Radhakishan Damani and his family, with the first shop opening in Powai in 2002. Currently, DMart has 324 stores across various states in India, including Maharashtra, Gujarat, Andhra Pradesh, Madhya Pradesh, Karnataka, Telangana, Chhattisgarh, NCR, Tamil Nadu, Punjab, and Rajasthan.
In conclusion, despite the decline in sales and net profit from the previous quarter, Avenue Supermarts’ sales and net profit have increased compared to the same period last year. The company’s costs have increased, resulting in a decrease in margins, but the EBITDA has seen a slight increase. The future prospects of the company depend on how it navigates the ongoing COVID-19 pandemic and the evolving retail landscape.
For the latest news, tech news, breaking news headlines, apps, games, and startups updates check out www.startupinsider.in
