Avenue Supermarts Limited (Dmart) headed by Radhakrishna Damani reported an annualized net profit of 3.14 percent in the quarter ended March 31, 2022. Fourth quarter consolidated net profit was 427 crore, compared to Rs 414 crore in the corresponding quarter from last year, the company that owns food and grocery chain Dmart said on Saturday.
Dmart’s total revenue increased by 18.53 percent year-on-year to Rs 8,786 crore, compared to Rs 7,412 crore in the same period last year. Avenue Supermarts’ PAT margin was 4.8 percent in Q4 FY22 compared to 5.5 percent in Q4 FY21, the company said in a regulatory filing on Saturday, May 14. The EBITDA in Q4 FY22 was Rs 739 crore, compared to Rs 613 crore in the corresponding quarter of last year. EBITDA margin was 8.4 percent in the fourth quarter of FY22, compared to 8.3 percent in the fourth quarter of FY21, according to the regulatory filing of the day.
Speaking of the results, Avenue Supermarts CEO and general manager Neville Noronha said January this year had started “extremely” well for the company, but the wave of Omicron ruined it. “January 2022 started extremely well, but then the Omicron wave of Covid-19 diminished momentum in the middle of the month. These waves tend to hurt the high margin and discretionary items more. Like the trend of the past, the recovery will take 40-50 days after restrictions are lifted or fears of a Covid wave ease. Omicron was a milder wave and thus had a significantly lower negative impact,” he said.
“The month of March 2022 had another strong recovery and very satisfying like-for-like growth compared to March 2021. Overall, the quarterly performance and the past two waves of stop-start-stop give us extreme confidence in the resilience of the company to recover in the short term,” Noronha added.
Dmart, or Avenue Supermarts, said the FMCG business recovered well. “The value proposition is clearly seen by our customers in this segment,” it noted in the filing. In the discretionary non-FMCG segment, it is currently difficult to estimate whether the relatively lower growth is due to a secular change over This was due to an e-commerce shift or inflation or to a significantly higher Covid-related negative economic impact for certain shoppers, Avenue Supermarts said in the filing.
“We could only provide that qualitative interpretation if there are no more Covid shutdowns/restrictions for at least 2 additional quarters. A high inflation environment helps us better control our costs and also deliver relatively better value to shoppers,” said the Radhakrishna Damani-backed company.
Commenting on its e-commerce company Dmart Ready, the company said: “After the Omicron wave, the e-commerce business has slowed down its growth trajectory. Overall, however, we are very happy and excited about this business. We are learning more every day. DMart Ready has had another great year, with turnover this year slightly more than double that of last year.”
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