DMart Shares Dip Over 4% Following Q2 FY24 Earnings Report

16 Oct 2023 , 02:16 PM

DMart’s stock saw a decline of over 4% during early trading after the company released its earnings report for the quarter ending in September 2023. Avenue Supermarts, the company behind the DMart retail chain, experienced a 4.09% drop, with its shares falling to Rs 3,771.70 on the BSE. The company reported a consolidated net profit of Rs 623.35 crore for Q2 FY24, marking a 9.09% decrease compared to Rs 685.71 crore in the same period the previous year.

During the same quarter, the company’s consolidated revenue from operations increased by 18.66% to Rs 12,624.37 crore from Rs 10,638.33 crore year-on-year. Earnings before Interest, Tax, Depreciation, and Amortization (EBITDA) for the quarter reached Rs 1,005 crore, up from Rs 892 crore in the corresponding quarter of the previous year. However, the EBITDA margin contracted to 8.0% from 8.4% year-on-year. CEO & Managing Director of Avenue Supermarts, Neville Noronha, attributed the lower gross margins to reduced contributions from the higher-margin General Merchandise and Apparel business compared to the previous year.

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