Avenue Supermarts, the company behind the renowned retail chain DMart, recently released its consolidated results for the second quarter of the financial year 2023-24. The results revealed a net profit of Rs 623.35 crore, marking a 9.09 percent decrease compared to the year-ago period when the net profit stood at Rs 685.71 crore.
In comparison to the previous quarter, the consolidated net profit registered a 5.36 percent drop, as it was previously reported at Rs 658.71 crore.
For the standalone net profit for Q1FY24, there was a 10.91 percent decrease, with the figure reaching Rs 658.54 crore. This drop contrasts with Rs 730.4 crore in the corresponding quarter of the previous year.
Despite the dip in net profit, the company reported an 18.66 percent year-on-year surge in consolidated revenue from operations, which reached Rs 12,624.37 crore. The revenue saw a 6.39 percent increase compared to the previous quarter, where it was at Rs 11,865.44 crore.
Additionally, the standalone total revenue for Q2FY24 showed an 18.51 percent rise, reaching Rs 12,307.72 crore, as opposed to Rs 10,384.66 crore in the same period the previous year.
Although the revenue aligned with expectations, the net profit fell short of estimates. According to a poll conducted with three brokerages, it was anticipated that DMart’s Q2 revenue would be around Rs 12,592 crore, and net profit would be about Rs 675 crore.
Earnings before Interest, Tax, Depreciation, and Amortization (EBITDA) for Q2FY24 was reported at Rs. 1,005 crore, compared to Rs. 892 crore in the corresponding quarter of the previous year. The EBITDA margin for Q2FY24 was 8.0 percent, in contrast to 8.4 percent in Q2FY23.
Neville Noronha, CEO & Managing Director of Avenue Supermarts Limited, commented, “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.”
On October 13, Avenue Supermarts’ shares closed at Rs 3920 on the National Stock Exchange, reflecting a 1.48 percent increase from the previous day.
In October of the previous year, Adda247 secured $35 million in a funding round led by WestBridge Capital, with Google as one of the new investors. Existing investors, such as Info Edge and Asha Impact, also participated in the funding.
Founded by Anil Nagar and Saurabh Bansal in 2016, Adda247 primarily caters to the learning needs of students from tier 2 and 3 cities.
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On a related note, major edtech player Byju’s recently announced plans to lay off 4,000 to 5,000 employees as part of a “business restructuring exercise.” This move comes as Byju’s has eliminated more than 10,000 positions in the past two years.
