Avenue Supermarts Ltd, which owns and operates retail chain D-Mart, reported over a six-fold jump in its consolidated net profit to Rs 642.89 crore for the quarter ended on June 30, 2022, helped by a very good recovery in overall sales and a comparative low YoY base. The company had posted a net profit of Rs 95.36 crore in the April-June quarter a year ago, said Avenue Supermarts in a BSE filing.
Its revenue from operations was up 93.66 percent to Rs 10,038.07 crore during the quarter under review against Rs 5,183.12 crore in the corresponding quarter last fiscal.
According to the Damani family promoted supermarket chain, its Q1FY23 results are not comparable with the corresponding quarter of the last fiscal, which was impacted by the second wave of Covid-19.
Neville Noronha, CEO and MD, Avenue Supermarts, said, "There has been a very good recovery of overall sales. However, this quarter's performance is not comparable to the same period last year due to the second wave of Covid-19 during that time."
Avenue Supermarts' total expenses were at Rs 9,191.79 crore, up 81.03 percent in Q1/FY 2022-23, as against Rs 5,077.22 crore in the corresponding quarter.
While talking about the growth of DMart in the brick and mortar segment in April-June, Noronha said: "We cumulatively opened 110 stores over the last three financial years which never got an opportunity to operate in normal circumstances over the last two years. These are stores that are larger, better designed, and have the capacity to handle a larger scale of revenue. These stores have done extremely well in this quarter."
D-Mart added 10 stores in the April-June quarter of 2022-23. This is also the first full quarter of zero disruption from the Covid-19 pandemic.
"Q1 like Q3 is a good revenue as well as profit-enhancing period due to back to school/college season and the onset of monsoons," he said.
Its general merchandise and apparel categories saw relatively better traction than the previous quarter but still have some overhang of the Covid-19-led disruptions and acute inflationary impact.