Avenue Supermarts share saw a sharp decline of 4 per cent in its share price during the early trading session on Monday after the company released its Q2 results. The supermarket chain, known as DMart, incurred a consolidated net profit of Rs 623.35 crore in Q2FY24, which was down by more than 9 per cent from Rs 685.71 crore as reported by the company in the same quarter of the previous financial year.
At 10:00 am, the stock was trading at Rs 3,833 price level, down by 102 points or 2.60 per cent on the National Stock Exchange (NSE).
In its exchange filing, it was reported that the company's total revenue saw a year-on-year increase of 18.50 per cent. During Q2FY24, the company's EBITDA margin stood at 8.1 per cent, a slight decrease from the 8.6 per cent EBITDA margin achieved in Q2FY23.
The total revenue for the quarter ending on June 30, 2023, saw a substantial increase of 18.51 per cent, reaching Rs. 12,307.72 crore, compared to Rs. 10,384.66 crore for the same period last year. The Earnings before Interest, Tax, Depreciation, and Amortization (EBITDA) amounted to Rs 1,002 crore, marking a rise from Rs 895 crore in the corresponding quarter of the prior year.
“Our gross margins continue to be lower compared to the same period in the previous year due to lesser contribution from the higher margin General Merchandise and Apparel business. We opened 9 new stores during the quarter taking our total store count to 336." Neville Noronha, CEO & Managing Director, Avenue Supermarts Limited.
Incorporated in the early 2000s, DMarts’ retail arm has 336 stores in more than 12 states. The first store was opened in Mumbai, Maharashtra in 2002.