Avenue Supermarts shares slip 2% despite strong Q3 earnings-Here is why
Avenue Supermarts shares slip 2% despite strong Q3 earnings-Here is why
Though Avenue Supermarts on Saturday reported a 24.7% YoY rise in the standalone profit to Rs 586 crore for the quarter ended December 31, 2021, shares of hypermarket chain operator slipped nearly 2 per cent to Rs 4640 per share on the BSE on back of decline in overall gross margins in the December quarter.
At 10.45 am, shares of Radhakishan Damani-founded D-mart were trading lower by Rs 65.85 or 1.39% to Rs 4665.00.
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Strong profit posted by the company seems to have failed to lift the sentiment of investors.
Against a profit of Rs 586 crore in Decemer quarter, Avenue Supermarts had posted a profit of Rs 470 crore in the corresponding quarter of the previous financial year.
The revenue grew 22% to Rs 9,065 crore as against Rs 7,433 crore posted last year. EBITDA was up 25.6% to Rs 862 crore from Rs 692 crore posted last year.
Margin stood at 9.6% in Q3FY22 against 9.3% posted in Q3FY21. General merchandise and apparel business is consistently seeing relatively lesser sales contribution while essentials and FMCG are doing better.
Promoted by Radhakishan Damani and his family, DMart retails basic home and personal products across markets which include - Maharashtra, Gujarat, Andhra Pradesh, Madhya Pradesh, Karnataka, Telangana, Chhattisgarh, NCR, Tamil Nadu, Punjab and Rajasthan.
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