Avenue Supermarts Q2 net profit up 47.5% YoY to Rs 322.6 crore

Avenue Supermarts, which owns and operates the D-Mart supermarket chain, on October 12 posted a 47.54 percent year-on-year rise in net profit at Rs 322.63 crore for the quarter ended September 2019.

The company reported a net profit of Rs 218.67 crore in the year-ago period. The net profit remains flat on a sequential basis as Avenue Supermart reported a net profit of Rs 323.06 cr in the June quarter. Shares of Avenue Supermart closed 1.2 percent higher at Rs 1,842.25 on October 11.

Total Revenue or total income increased by 22.26 percent on a year-on-year (YoY) basis to Rs 5,998.90 crore for the quarter ended September, compared to Rs 4,906.54 crore reported in the year-ago period.

The company said that it added five stores in Q2FY20.

Earnings before Interest, Tax, Depreciation, and Amortization (EBITDA) in Q2FY20 stood at Rs 517 crores, as compared to Rs 388 crore in the corresponding quarter of last year.

The EBITDA margin improved from 7.9 percent in Q2 FY19 to 8.6 percent in Q2 FY20.

Commenting on the financial performance of the company Neville Noronha, CEO & Managing Director, Avenue Supermarts said, "Revenue growth for the quarter was slightly lower than our estimates while gross margin saw improvement over the corresponding period last year due to better revenue mix."

"PAT margin improvement is in line with revenue growth and also aided by a revision in corporate tax rates," he said.