Avenue Supermarts Q4FY22 Results: Consolidated revenue surges 18.5% YoY to Rs 8786 cr, margins improve slightly

Avenue Supermarts Q4FY22 Results: Radhakishan Damani-backed Avenue Supermarts, which operates a retail chain called DMart, on Saturday reported healthy fourth-quarter earnings for the financial year 2021-22 (Q4FY22). Both the top and bottom line of the company registered year-on-year growth during the quarter.

“The consolidated total revenue for the quarter ended March 31, 2022 surged 18.5 per cent to Rs 8,786 crore, versus Rs 7,412 crore in the same period last year, DMart said in a filing to exchanges.

Consolidated EBITDA (Earnings before Interest, Tax, Depreciation and Amortization) in Q4FY22 stood at Rs 739 crore, as compared to Rs 613 crore in the corresponding quarter of last year, while EBITDA margin improved by 10 basis points to 8.4 per cent from 8.3 per cent YoY.   

The company’s consolidated net profit jumped 3 per cent to Rs 427 crore for Q4FY22, as compared to Rs 414 crore in the corresponding quarter of last year, Avenue Supermarts said in a filing.

Basic Earnings per share (EPS) for Q4FY22 stood at Rs. 6.59, as compared with Rs. 6.39 for Q4FY21 the regulatory filing also said.

“January 2022 started extremely well but then the Omicron wave 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,” Neville Noronha, CEO & MD, Avenue Supermarts Limited said in a comment.

March 2022 month again had robust recovery and very satisfactory like for like growth vis a vis March 2021, Noronha further said.

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, he added.