DMart Q3FY23 Results: Retail chain’s profit up 9.4% to Rs 641 cr, sales up over 25% - check details

Radhakishan Damani-owned Avenue Supermarts Ltd, which operates under the retail chain DMart, on Saturday January 1, 2023, reported in-line results with respect to Zee Business’ expectations as profit grew in single-digit, while revenue was over 25 per cent during the December quarter.

The net profit stood at Rs 641 crores for the October-December quarter of the financial year 2022-23 (Q3FY23), which translates to over 9 per cent growth on year-on-year (YoY) basis as compared to Rs 586 crore in the corresponding quarter of last year, DMart said in its exchange filing.

While the retail chain company’s revenue from operations was up 25.50 per cent to Rs 11,569.05 crore during the quarter under review against Rs 9,217.76 crore in the same quarter last fiscal.

Avenue Supermarts' total expenses were at Rs 10,788.86 crore, up 27.02 per cent in the third quarter of FY2022-23 against Rs 8,493.55 crore in the corresponding quarter of the last fiscal.

Similarly, Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) in Q3FY23 stood at Rs 974 crore, as compared to Rs 868 crore in the corresponding quarter of last year; whereas EBITDA margin slipped by 100 basis points to 8.6% in Q3FY23 as compared to 9.6% in Q3FY22.

D-Mart follows the Everyday low cost - Everyday low price (EDLC-EDLP) strategy which aims at procuring goods at competitive prices, using operational and distribution efficiency and thereby delivering value for money to customers by selling at competitive prices, the company also said in its filing.

Commenting on the performance of the company Neville Noronha, CEO & Managing Director, Avenue Supermarts Limited, said: “Q3 saw revenues grow by 24.7% over the corresponding quarter of last year. FMCG and staples segment continued to outperform the general merchandise and apparel segments.”

“Gross margin percentage decline overthe corresponding quarter of last year reflects this mix change. Discretionary non-FMCG sales did not do as well as expected in this quarter,” he added.

DMart Ready: The company has further expanded it e-commerce operations in 4 new cities while continuing to deepen our presence in the existing 18 cities. With total operations now span across 22 cities in India.