D-Mart Parent Avenue Supermarts Reports 47% Profit Jump In January-March Quarter

Avenue Supermarts Ltd., parent of supermarket chain D-Mart, reported a 47 percent year-on-year increase in standalone net profit for the January-March quarter of the financial year 2016-17. This was the company's first earnings report since it listed on the BSE in March this year.

Net profit rose to Rs 97 crore from Rs 66 crore in the same quarter last year. Sales rose 40.5 percent to Rs 3,120 crore in the same period. Operating income jumped 41 percent to Rs 217 crore and the operating margins expanded by 20 basis point to 6.95 percent.

The company's like to like growth in financial year 2016-17, that is growth in annual sales of stores that have been operating for at least 2 years, remained at similar levels of just over 21 percent. The sales mix also remained largely unchanged:

• Foods category constituted 53.7 percent of the total revenue versus 53 percent in FY16
• Non-food (FMCG) constituted 20 percent of the total revenue, as compared to 20.6 percent of FY16
• General merchandise and apparel was unchanged at 26.4 percent

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The supermarket-chain added a total of 21 stores over the year, of which 14 were added in the March-ending quarter.

Neville Noronha, Chief Executive Ofiicer and Managing Director at Avenue Supermarts said in the media statement that the results were in line with their expectations. “Delivering great value and being consistently relevant to consumers is our most important long term objective,” he added.

Also Read: Profits, Existing Markets To Remain D-Mart's Focus, Says CEO Neville Noronha