Radhakrishna Damani led Avenue Supermarts Limited (Dmart) reported a net profit of 3.14 per cent on Year on Year basis in the quarter ended March 31, 2022. The consolidated net profit of Q4 stood at 427 crore, as compared to Rs 414 crore in the corresponding quarter of last year, the company that owns food and grocery chain Dmart, said on Saturday.
The total revenue of Dmart jumped 18.53 per cent YoY to Rs 8,786 crore, as compared with Rs 7,412 crore in the same period last year. PAT margin stood of Avenue Supermarts at 4.8 per cent in Q4 FY22 as compared to 5.5 per cent in Q4 FY21, the company said in a regulatory filing on Saturday, May 14. The in EBITDA in Q4 FY22 stood at Rs 739 crore, as compared to Rs 613 crore in the corresponding quarter of last year. EBITDA margin stood at 8.4 per cent in Q4 FY22 as compared to 8.3 per cent in Q4 FY21, the regulatory filing on the day said.
Speaking about the results, Avenue Supermarts CEO and managing director Neville Noronha said that the month of January this year had started ‘extremely’ well for the company but the Omicron wave ruined it. “January 2022 started extremely well but then the Omicron wave of Covid‐19 reduced the momentum over the middle of the month. These waves typically hurt the high margin and discretionary items more. As is the trend of the past, recovery does take 40‐50 days after restrictions are removed or anxiety of a Covid wave recedes. Omicron was a milder wave and hence had a significantly lower negative impact,” he said.
“March 2022 month again had robust recovery and very satisfactory like for like growth vis a vis March 2021. In general, the quarter performance and past two waves of stop‐start‐stop give us extreme confidence on the resilience of the business to recover in the short term,” Noronha added.
Dmart, or Avenue Supermarts, said its FMCG business was recovering well. “The value proposition is being distinctly seen by our customers in this segment,” it noted in the filing. In the discretionary non‐FMCG segment, as of now it is hard to estimate if the relative lower growth is due to a secular change over time, the retailer added. This was due to a e-commerce shift or, inflation or due to significantly higher Covid-related negative economic impact for certain shoppers, Avenue Supermarts said in the filing.
“We would be able to give that qualitative interpretation only if there are no more Covid shutdowns/restrictions over at least 2 more quarters. High inflation environment is helping us manage our costs better and also deliver relatively better value to shoppers,” the Radhakrishna Damani-backed company said further.
Commenting on its e-commerce business Dmart Ready, the company said, “Post Omicron wave, the Ecommerce business has slowed down its growth trajectory. However, in general we are quite happy and excited about this business. We are learning every single day. DMart Ready has again had a tremendous year. Top line sales this year were slightly more than double that of last year.”