Avenue Supermarts Q4 results preview: Consolidated PAT likely to climb 27%, margin may improve

Avenue Supermarts, operating and owning D-Mart stores, is scheduled to report its March quarter earnings on May 4, 2024 (Saturday).

Zee Business Research desk estimates Radhakishan Damani-led diversified retail company to report consolidated revenue of Rs 12,614 crore in the March ended quarter, a growth of 19 per cent over the last year’s revenue of Rs 10,594 crore. EBITDA or EBITDA, or earnings before interest, taxes, depreciation, and amortization, an alternate measure of profitability is also seen to come in higher by 24 per cent on year to Rs 959 crore as against Rs 772 crore in Q4FY23.

Furthermore, the desk expects margins at the company to log an improvement with margins estimated at 8 per cent versus 7 per cent in the same period last year. Consequently, PAT or profit after tax at the company during the review period is expected to log a healthy growth of 27 per cent at Rs 586 crore as against Rs 460 crore in the same period last year.

Additionally, its same-store sales growth (SSSG) is pegged at a single digit. The company’s SSSG continues to be above most other FMCG companies, suggesting strong consumer demand and market positioning.

In the quarter gone-by, the company added 24 new stores, with total stores as of March 31, 2024 at 365. The desk stated that the new store addition during the review period has been higher than estimates.

Besides, it is held that revenue per store during the period is expected to log 4 per cent CAGR. Meanwhile, key monitorables for investors and stakeholders will be commentary around online and quick delivery. 

Avenue Supermarts Q3FY24 earnings

In Q3FY24 Avenue Supermarts generated a revenue of Rs 13,572 crore which was up 7.5 per cent /17.3 cent  on QoQ/YoY basis driven by store expansion and encouraging trends post Diwali in General Merchandise and Apparel. EBITDA margin stood at 8.3% which was up by 29bps on QoQ basis and down by 10 bps on YoY basis due to rise in employee cost. Profit after tax stood at Rs 690.5 crore which was up by 10.8%/17.1% on QoQ/YoY basis. PAT margins for the quarter were at 5.1% up by 15 bps on QoQ basis.

Avenue Supermarts share price

Shares of the company have rallied 29 per cent in the last one year, outperforming the Nifty 50 index which gained 23.5 per cent during the period. Ahead of its results tomorrow, shares of the company traded with a cut of 0.4 per cent at Rs 4587 per share on the BSE.