On consolidated basis
Quarter ended March 2022 compared
with Quarter ended March 2021.
Net sales (including other operating income) of Avenue Supermarts has increased
18.55% to Rs 8786.45 crore.
Operating profit margin has jumped
from 8.27% to 8.41%, leading to 20.67% rise in operating profit to Rs 739.28
crore. Purchase of finished goods cost fell from 85.78% to 85.30%.
Employee cost increased from 1.77% to 1.80%. Other
expenses rose from 4.50% to 4.63%.
Other income fell 32.32% to Rs 32.57
crore. PBIDT rose 16.81% to Rs 771.85 crore. Provision
for interest rose 35.64% to Rs 16.63 crore. Loan funds rose to Rs
646.94 crore as of 31 March 2022 from Rs 392.71 crore as of 31 March
2021. Inventories rose to Rs 2,742.66 crore as of 31 March 2022 from
Rs 2,248.28 crore as of 31 March 2021. Sundry debtors were higher at
Rs 66.89 crore as of 31 March 2022 compared to Rs 43.58 crore as of 31 March
2021. Cash and bank balance declined from Rs 1,445.58 crore as of 31
March 2021 to Rs 298.58 crore as of 31 March 2022. Investments rose
to Rs 5.94 crore as of 31 March 2022 from Rs 2.95 crore as of 31 March 2021
.
PBDT rose 16.45% to Rs 755.22
crore. Provision for depreciation rose 39.42% to Rs 146.33 crore. Fixed
assets increased to Rs 10,311.09 crore as of 31 March 2022 from Rs 7,950.12
crore as of 31 March 2021. Intangible assets stood at Rs 78.27
crore.
Profit before tax grew 12.02% to Rs
608.89 crore. Share of profit/loss were nil in both the periods. Provision
for tax was expense of Rs 182.14 crore, compared to Rs 129.69
crore. Effective tax rate was 29.91% compared to 23.86%.
Minority interest decreased 700% to
Rs -0.08 crore. Net profit attributable to owners of the company
increased 3.13% to Rs 426.83 crore.
Equity capital stood at Rs 647.77
crore as of 31 March 2022 to Rs 647.77 crore as of 31 March
2021. Per share face Value remained same at Rs 10.00.
Promoters’ stake was 74.99% as of 31
March 2022 ,compared to 74.99% as of 31 March 2021 .
Full year results analysis.
Net sales (including other operating income) of Avenue Supermarts has increased
28.30% to Rs 30976.27 crore.
Operating profit margin has jumped
from 7.22% to 8.07%, leading to 43.34% rise in operating profit to Rs 2,498.50
crore. Purchase of finished goods cost rose from 85.32% to 85.45%.
Employee cost decreased from 2.20% to 1.96%. Other
expenses fell from 5.35% to 4.65%.
Other income fell 40.12% to Rs
117.49 crore. PBIDT rose 34.90% to Rs 2615.99 crore. Provision
for interest rose 29.15% to Rs 53.79 crore. Loan funds rose to Rs
646.94 crore as of 31 March 2022 from Rs 392.71 crore as of 31 March
2021. Inventories rose to Rs 2,742.66 crore as of 31 March 2022 from
Rs 2,248.28 crore as of 31 March 2021. Sundry debtors were higher at
Rs 66.89 crore as of 31 March 2022 compared to Rs 43.58 crore as of 31 March
2021. Cash and bank balance declined from Rs 1,445.58 crore as of 31
March 2021 to Rs 298.58 crore as of 31 March 2022. Investments rose
to Rs 5.94 crore as of 31 March 2022 from Rs 2.95 crore as of 31 March 2021
.
PBDT rose 35.02% to Rs 2562.2
crore. Provision for depreciation rose 20.26% to Rs 498.08
crore. Fixed assets increased to Rs 10,311.09 crore as of 31 March
2022 from Rs 7,950.12 crore as of 31 March 2021. Intangible assets
stood at Rs 78.27 crore.
Profit before tax grew 39.14% to Rs
2,064.12 crore. Share of profit/loss were nil in both the
periods. Provision for tax was expense of Rs 571.72 crore, compared
to Rs 384.02 crore. Effective tax rate was 27.70% compared to
25.89%.
Minority interest decreased 150% to
Rs -0.15 crore. Net profit attributable to owners of the company
increased 35.75% to Rs 1,492.55 crore.
Equity capital stood at Rs 647.77
crore as of 31 March 2022 to Rs 647.77 crore as of 31 March
2021. Per share face Value remained same at Rs 10.00.
Promoters’ stake was 74.99% as of 31
March 2022 ,compared to 74.99% as of 31 March 2021 .
Cash flow from operating activities
decreased to Rs 1,372.35 crore for year ended March 2022 from Rs 1,375.14 crore
for year ended March 2021. Cash flow used in acquiring fixed assets
during the year ended March 2022 stood at Rs 2,410.42 crore, compared to Rs
2,029.42 crore during the year ended March 2021.
Management Commentary
D-Mart follows Everyday low cost -
Everyday low price (EDLC-EDLP) strategy which aims at procuring goods at
competitive price, using operational and distribution efficiency and thereby
delivering value for money to customers by selling at competitive prices.
Commenting
on the performance of the company Mr. Neville Noronha, CEO & Managing
Director, Avenue Supermarts Limited, said: “January 2022 started extremely well
but then the Omicron wave of Covid-19 reduced the momentum over the
middle of the month. These waves typically hurt the high margin and
discretionary items more. As is the trend of the past, recovery does take 40-50 days after restrictions are removed
or anxiety of a Covid wave recedes. Omicron was a milder wave and hence had a
significantly lower negative impact
March 2022 month again had robust
recovery and very satisfactory like for like growth vis a vis March 2021. In
general, the quarter performance and past two waves of stop-start-stop give us extreme confidence on the resilience of the
business to recover in the short term.
Our FMCG business is recovering
well. The value proposition is being distinctly seen by our customers in this
segment. In the discretionary non-FMCG
segment, as of now it is hard to estimate if the relative lower growth is due
to a secular change over time due to Ecommerce shift or due to inflation or due
to significantly higher Covid related negative economic impact for certain
shoppers. We would be able to give that qualitative interpretation only if
there are no more Covid shutdowns/restrictions over at least 2 more quarters.
High inflation environment is helping us manage our costs better and also
deliver relatively better value to shoppers.
DMart (Brick and Mortar) Business
Overview We ended the year with growth across key financial parameters of
Revenue, EBITDA and PAT. Two years and older DMart stores grew by 16.7% during
FY 2022 as compared to FY 2021. We have 214 stores that are 2 years or older.
Our sales from General Merchandise and Apparel moved slightly up at 23.40% as
compared to 22.90% in the previous year. However, this may not be
representative of post-Covid steady state contribution from these Non-FMCG categories. We remain more optimistic on this for the
future.
Our store footprint continues
to grow across the country. We opened 50 additional stores during the year
taking our total to 284 stores. We had a record opening this year primarily because
of delayed openings in the previous year due to Covid
DMart Ready Gradual expansion
of our E-Commerce business continued during the year. We are now
present in 12 cities across the country. We commenced operations in 7 new
cities during the year – Bhopal, Indore, Kolhapur, Nagpur, Surat, Vadodara and
Vizag and continued our steady expansion during the year in Mumbai, Ahmedabad,
Bangalore, Hyderabad and Pune.
Post Omicron wave, the Ecommerce
business has slowed down its growth trajectory. However, in general we are
quite happy and excited about this business. We are learning every single day.
DMart Ready has again had a tremendous year. Top line sales this year were
slightly more than double that of last year.
At a fundamental level, we believe
that for Grocery, Ecommerce is a channel of convenience while Brick and Mortar
is still the channel of Joy, except for the effort to reach the store and the
time to wait at the checkout. Each has its own unique magic.
We will operate both channels to the
best of our abilities with a mindset to improve on these principles and ensure
that the value to the shopper remains supreme.”
| Avenue Supermarts : Consolidated Results | | | Quarter ended | Year ended |
|---|
| Particulars | 202203 | 202103 | Var.(%) | 202203 | 202103 | Var.(%) |
|---|
| Net Sales (including other operating income) | 8,786.45 | 7,411.68 | 18.55 | 30,976.27 | 24,143.06 | 28.30 | | OPM (%) | 8.41 | 8.27 | 15 bps | 8.07 | 7.22 | 85 bps | | OP | 739.28 | 612.66 | 20.67 | 2,498.50 | 1,743.05 | 43.34 | | Other Inc. | 32.57 | 48.12 | -32.32 | 117.49 | 196.21 | -40.12 | | PBIDT | 771.85 | 660.78 | 16.81 | 2,615.99 | 1,939.26 | 34.90 | | Interest | 16.63 | 12.26 | 35.64 | 53.79 | 41.65 | 29.15 | | PBDT | 755.22 | 648.52 | 16.45 | 2,562.20 | 1,897.61 | 35.02 | | Depreciation | 146.33 | 104.96 | 39.42 | 498.08 | 414.16 | 20.26 | | PBT | 608.89 | 543.56 | 12.02 | 2064.12 | 1483.45 | 39.14 | | Share of Profit/(Loss) from Associates | 0 | 0 | - | 0 | 0 | - | | PBT before EO | 608.89 | 543.56 | 12.02 | 2064.12 | 1483.45 | 39.14 | | EO Income | 0 | 0 | - | 0 | 0 | - | | PBT after EO | 608.89 | 543.56 | 12.02 | 2064.12 | 1483.45 | 39.14 | | Taxation | 182.14 | 129.69 | 40.44 | 571.72 | 384.02 | 48.88 | | PAT | 426.75 | 413.87 | 3.11 | 1492.4 | 1099.43 | 35.74 | | Minority Interest (MI) | -0.08 | -0.01 | -700.00 | -0.15 | -0.06 | -150.00 | | Net profit | 426.83 | 413.88 | 3.13 | 1492.55 | 1099.49 | 35.75 | | P/(L) from discontinued operations net of tax | 0 | 0 | - | 0 | 0 | - | | Net profit after discontinued operations | 426.83 | 413.88 | 3.13 | 1492.55 | 1099.49 | 35.75 | | EPS (Rs)* | 6.59 | 6.39 | 3.13 | 23.04 | 16.97 | 35.75 | | | * EPS is on current equity of Rs 647.77 crore, Face value of Rs 10, Excluding extraordinary items. | | # EPS is not annualised | | bps : Basis points | | EO : Extraordinary items | | Figures in Rs crore | | Source: Capitaline Corporate Database |
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