D-Mart operator Avenue Supermarts posts Rs 11,584cr revenue for Q1 FY24

Avenue Supermarts Ltd. (ASL), the operator of D-Mart stores in India, has declared its standalone and consolidated financial results for the quarter ended June 30, 2023.

The company reported a standalone total revenue of Rs. 11,584 crore for this quarter, marking an increase from Rs. 9,807 crore in the same period last year. However, EBITDA margin shrunk to 8.9% in Q1FY24 from 10.3% in Q1FY23. Similarly, net profit margin declined from 6.9% in Q1FY23 to 6.0% in Q1FY24. Basic Earnings per share (EPS) for Q1FY24 stood at Rs. 10.71, slightly higher than Rs. 10.49 for Q1FY23.

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On a consolidated basis, Avenue Supermarts saw its total revenue for the quarter ended June 30, 2023, rise to Rs. 11,865 crore, up from Rs. 10,038 crore in the same period last year. The consolidated EBITDA margin for Q1FY24 stood at 8.7%, a decline from the 10.0% recorded in Q1FY23. The net profit also witnessed a marginal increase, standing at Rs. 659 crore for Q1FY24 compared to Rs. 643 crore in the corresponding quarter of last year. The PAT margin, however, dipped from 6.4% in Q1FY23 to 5.5% in Q1FY24. The basic EPS for Q1FY24 was Rs. 10.14, slightly up from Rs. 9.93 for Q1FY23.

Avenue Supermarts announces Q1FY24 financial results: Standalone revenue hits Rs. 11,584 crore. Photo courtesy of Csguy9/Wikimedia Commons.

Neville Noronha, CEO & Managing Director of Avenue Supermarts Limited, commented on the performance of the company, stating, “Our revenue grew by 18% in this quarter over the corresponding quarter of last year. 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. We opened 3 new stores during the quarter. Our total stores now stand at 327.”

Avenue Supermarts’ approach of ‘Everyday low cost – Everyday low price’ (EDLC-EDLP) strategy, which emphasizes operational and distribution efficiency for competitive pricing, continues to be the cornerstone of their business model. Despite the challenges, the company managed to expand its footprint by adding three new stores during the quarter, bringing its total number of stores to 327.