DMart retail chain operator Avenue Supermarts share fell by 4.7 per cent on Monday after the company’s basis-point decline in the March quarter operating margins on 13 May 2023.
The company’s margin fell from 8.4 per cent in the same period last year to 7.3 per cent this year. Its EBITDA growth also stood relatively modest, increasing by 4.4 percent on year to Rs 771.5 crore.
It’s the retail operator’s so far 12 per cent stock down in 2023.
The company’s net profit for the March quarter increased by 8 per cent year-on-year (YoY) to Rs 460.1 crore and revenue from operations jumped to 20.6 percent YoY to Rs 10,594 crore. Subsequently, 18 new stores were opened by DMart this quarter and 40 others in the financial year 2023 in comparison to 50 stores, last year 2022, taking the total store count to 324.
Slow recovery in gross merchandise and apparel sales, which are high-margin businesses compared to staples are the estimated reason for the margin fall according to the management.
