Avenue Supermarts Q1 results preview: PAT likely to rise 9% YoY to Rs 742 crore; margins expected to remain flat

Avenue Supermarts Q1 results preview: Avenue Supermarts, which owns and operates the supermarket chain DMart, is slated to release its June quarter numbers (Q1FY24) on July 15. The company, as per Zee Business Research, is expected to report a standalone revenue of Rs 11,584 crore, up 18 per cent on a year-on-year (YoY) basis and profit after tax (PAT) is seen rising 9 per cent YoY to Rs 742 crore. It had posted a PAT of Rs 680 crore in the year-ago period. 

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) are expected to increase 13 per cent YoY to Rs 1,141 crore while margins are expected to remain flat at 10 per cent. Gross margins are expected to improve. 

The research desk notes that discretionary spending is still less due to inflation. An increase in low-margin products will lead to an increase in income; however, margins will be impacted. The company opened three new stores during the quarter under review. The total number of stores as of June 30 stood at 327.

Avenue Supermarts' share price

The stock was listed on bourses on March 21, 2017. In the past 12 months, the scrip has slipped around 3 per cent, Trendlyne data show.

About the company

DMart was started by Radhakishan Damani and his family. From the launch of its first store in Powai in 2002, DMart today has a presence in 327 locations across Maharashtra, Gujarat, Andhra Pradesh, Madhya Pradesh, Karnataka, Telangana, Chhattisgarh, NCR, Tamil Nadu, Punjab and Rajasthan. It has its headquarters in Mumbai.

Avenue Supertmarts Q4FY23 numbers

Avenue Supermarts reported an increase of 7.81 per cent in its consolidated net profit at Rs 460.10 crore for the fourth quarter ended March 31, 2023. The company had posted a net profit of Rs 426.75 crore in the January-March quarter a year ago, said Avenue Supermarts in a BSE filing.

Its revenue from operations was up 20.57 per cent to Rs 10,594.11 crore during the quarter under review as against Rs 8,786.45 crore in the corresponding quarter last fiscal. Avenue Supermarts' total expenses were at Rs 10,002.21 crore, up 21.82 per cent in Q4/FY 23, as against Rs 8,210.13 crore in the corresponding quarter.

The total income of Avenue Supermarts in the March quarter was Rs 10,627.18 crore, up 20.5 per cent. The total number of D-Mart stores as of March 31, 2023, stood at 324.