DMart Q1 profit of 88% to 40 crores

DMart Q1 profit of 88% to 40 crores

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Mumbai: Avenue Supermarts Ltd, which owns and operates a DeMart store across the country, reported a 87.61 percent decline in its consolidated net profit for the April-June quarter to Rs 40.6 crore on Saturday.
It reported a profit of Rs 323 crore in the same quarter last year. Profit after tax margin in Q1 FY was 1 percent compared to 5.5 percent in Q1 FY. The chain of hypermarkets said that its total revenue fell to Rs 3,883 crore from Rs 5,815 crore in the year-ago quarter.
CEO and Managing Director Neville Noronha said, “Kovid-19 continued to spread across the country. The ensuing sanctions have had a significant impact on our operating and financial performance in the quarter.”
“Our revenue, EBITDA and profit were significantly lower for the quarter compared to the same quarter last year,” he said in a statement.
DeMart said that wherever shops were allowed to operate without a license, 80 percent or pre-COVID sales saw a recovery. But discretionary consumption continues, especially in non-FMCG categories.
The company said, “It is negatively impacting gross margins. Due to the strict lockdown implemented from time to time by local authorities, store operations in the cities and the period of operation continue daily.”
“Also, in some cities, authorities are once again insisting on selling only essential products. So there remains uncertainty in our future revenues.”
Avenue Supermarts has 216 stores in Maharashtra, Gujarat, Daman, Andhra Pradesh, Karnataka, Telangana, Tamil Nadu, Madhya Pradesh, Rajasthan, NCR, Chhattisgarh and Punjab with a retail business area of ​​80 lakh square feet.

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