Avenue Supermarts Q2FY23 PAT up 64.14% at Rs686cr on better cost controls and inventory efficiencies

  • India Infoline News Service |
  • 16 Oct, 2022 |
  • 5:06 PM
Avenue Supermarts reported 36.58% growth in total sales revenues for the September 2022 quarter on consolidated basis at Rs10,638cr. Sequential revenues were up 5.98%.

For the first half of FY23, the company reported 59.2% growth in revenues at Rs20,192 crore. EBITDA was up 33.5% in the quarter at Rs895 crore.  

The company, which runs the D-Mart chain, has persisted with its Everyday Low Cost – Everyday Low Price (EDLC-EDLP) strategy, which entails squeezing suppliers for deep discounts and then passing on big discounts to the end customers in residential localities.

FMCG and staples have done a lot better than general merchandise and apparel with inflation hitting the low price point products most.

Consolidated Profit after tax (PAT) for September 2022 quarter was up 64.2% at Rs686cr.

Apart from the cost controls and investor efficiency in the quarter, the company also gained from a Rs141 crore tax credit in the quarter, which helped the net profit surge despite operating profits growing at the same rate as sales growth.

While D-Mart is now present in 18 cities, 90% revenues come from the metros. Net margins are flat on a yoy basis.

Financial highlights for Sep-22 compared yoy and sequentially

Avenue Supermarts
Rs in Crore Sep-22 Sep-21 YOY Jun-22 QOQ
Total Income (Rs cr) ₹ 10,638 ₹ 7,789 36.58% ₹ 10,038 5.98%
Operating Profit (Rs cr) ₹ 730 ₹ 553 32.12% ₹ 864 -15.45%
Net Profit (Rs cr) ₹ 686 ₹ 418 64.14% ₹ 643 6.66%
Diluted EPS (Rs) ₹ 10.50 ₹ 6.40 ₹ 9.85
OPM 6.86% 7.09% 8.60%
Net Margins 6.45% 5.36% 6.40%

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