On consolidated basis
Quarter ended September 2022 compared with Quarter ended September
2021.
Net sales (including other operating income) of Avenue Supermarts has increased
36.58% to Rs 10638.33 crore.
Operating profit margin
has declined from 8.58% to 8.39%, leading to 33.42% rise in operating profit to
Rs 892.02 crore. Purchase of finished goods cost fell from 86.04% to
85.98%. Employee cost decreased from 1.76% to 1.64%.
Other expenses rose from 4.18% to 4.60%.
Other income rose 29.35%
to Rs 35.57 crore. PBIDT rose 33.26% to Rs 927.59
crore. Provision for interest rose 42.93% to Rs 17.68
crore. Loan funds rose to Rs 710.83 crore as of 30 September 2022
from Rs 510.22 crore as of 30 September 2021. Inventories rose to Rs
3,648.28 crore as of 30 September 2022 from Rs 2,747.31 crore as of 30
September 2021. Sundry debtors were higher at Rs 64.50 crore as of
30 September 2022 compared to Rs 49.09 crore as of 30 September
2021. Cash and bank balance rose to Rs 1,135.46 crore as of 30
September 2022 from Rs 607.24 crore as of 30 September
2021. Investments rose to Rs 12.56 crore as of 30 September 2022 from
Rs 6.57 crore as of 30 September 2021 .
PBDT rose 33.08% to Rs
909.91 crore. Provision for depreciation rose 39.61% to Rs 161.96
crore. Fixed assets increased to Rs 11,118.25 crore as of 30
September 2022 from Rs 8,757.18 crore as of 30 September 2021. Intangible
assets declined from Rs 93.71 crore to Rs 78.27 crore.
Profit before tax grew
31.75% to Rs 747.95 crore. Share of profit/loss were nil in both the
periods. Provision for tax was expense of Rs 62.24 crore, compared
to Rs 149.94 crore. Effective tax rate was 8.32% compared to 26.41%.
Minority interest
decreased 100% to Rs -0.06 crore. Net profit attributable to owners
of the company increased 64.14% to Rs 685.77 crore.
Equity capital stood at
Rs 647.77 crore as of 30 September 2022 to Rs 647.77 crore as of 30 September
2021. Per share face Value remained same at Rs 10.00.
Promoters’ stake was
74.99% as of 30 September 2022 ,compared to 74.99% as of 30 September 2021
.
For year-to-date (YTD)
results analysis.
Net sales (including other operating income) of Avenue Supermarts has increased
59.39% to Rs 20676.4 crore.
Operating profit margin
has jumped from 6.88% to 9.19%, leading to 112.85% rise in operating profit to
Rs 1,900.26 crore. Purchase of finished goods cost fell from 86.32%
to 84.94%. Employee cost decreased from 2.18% to 1.71%.
Other expenses fell from 4.88% to 4.55%.
Other income rose 9.75%
to Rs 64.71 crore. PBIDT rose 106.47% to Rs 1964.97
crore. Provision for interest rose 50.37% to Rs 34.9
crore. Loan funds rose to Rs 710.83 crore as of 30 September 2022
from Rs 510.22 crore as of 30 September 2021. Inventories rose to Rs
3,648.28 crore as of 30 September 2022 from Rs 2,747.31 crore as of 30
September 2021. Sundry debtors were higher at Rs 64.50 crore as of
30 September 2022 compared to Rs 49.09 crore as of 30 September
2021. Cash and bank balance rose to Rs 1,135.46 crore as of 30
September 2022 from Rs 607.24 crore as of 30 September
2021. Investments rose to Rs 12.56 crore as of 30 September 2022
from Rs 6.57 crore as of 30 September 2021 .
PBDT rose 107.87% to Rs
1930.07 crore. Provision for depreciation rose 37.26% to Rs 306.7
crore. Fixed assets increased to Rs 11,118.25 crore as of 30
September 2022 from Rs 8,757.18 crore as of 30 September 2021. Intangible
assets declined from Rs 93.71 crore to Rs 78.27 crore.
Profit before tax grew
130.25% to Rs 1,623.37 crore. Share of profit/loss were nil in both
the periods. Provision for tax was expense of Rs 294.77 crore,
compared to Rs 191.94 crore. Effective tax rate was 18.16% compared
to 27.22%.
Minority interest
decreased 150% to Rs -0.10 crore. Net profit attributable to owners
of the company increased 158.93% to Rs 1,328.70 crore.
Equity capital stood at
Rs 647.77 crore as of 30 September 2022 to Rs 647.77 crore as of 30 September
2021. Per share face Value remained same at Rs 10.00.
Promoters’ stake was
74.99% as of 30 September 2022 ,compared to 74.99% as of 30 September 2021
.
Cash flow from operating
activities increased to Rs 834.55 crore for YTD ended September 2022 from Rs
241.56 crore for YTD ended September 2021. Cash flow used in
acquiring fixed assets during the YTD ended September 2022 stood at Rs 968.52
crore, compared to Rs 1,036.20 crore during the YTD ended September 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.
Mangement 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: Q2 FY 2023 saw revenue growth of 35.8% over the
corresponding quarter last year. The FMCG and staples segment of the business
has performed better than general merchandise and apparel segments.
Discretionary items in the non-FMCG segment while recovering have still not
come back to pre-pandemic levels. The inflationary stress is more acute at lower
price points in discretionary non-FMCG categories. Average basket values
continue to be elevated and footfalls continue to be lower than pre-pandemic
levels. Post wave 2 of Covid-19, January 2022 was the first month post pandemic
when basket values dropped and footfalls were near pre Covid-19 levels.
However, post the omicron third wave basket values again increased and
footfalls reduced commensurate to that basket value. It has remained like that
till the month of September 2022. Reduction of footfalls coupled with increased
basket values make FMCG shopping more productive and profitable; however, it
has a direct negative impact on the more profitable non-FMCG categories. As and
when footfalls increase, we assume we should be inching towards our pre-pandemic
contributions for apparel and general merchandise sale.
Our like-for-like growth (LFL) for all stores that are 5 years or older
as of the end of September 2022 was at 6.5% annualized / 20.8% absolute (growth
for quarter ended September 30, 2022 versus quarter ended September 30, 2019).
Within this cohort, we are seeing lesser like-for-like growth in older stores
which have significantly higher turnover per square feet than the company
average and we have opened a new DMart store close to it. However, we do not
see that effect in our younger stores. They are doing well.
LFL growth and average sales per store at an enterprise level depend
primarily on the number of new stores added per year and the population profile
of the city for those newly opened stores. Over time as the DMart brand has
become more popular, store revenues have started accelerating at a faster pace
than earlier. Within that, large metros bring in revenues much faster and much
higher absolute levels than smaller cities. Yet, the newer stores have revenues
per store significantly lower than the older stores.
DMart Ready
We continued our strategy of
targeting large towns / cities for this business and commenced operations in 6
more cities (Anand, Belgaum, Bhilai, Jaipur, Raipur and Vijayawada) during the
quarter. We are now present in 18 cities across India. While the expansion in
18 cities looks like a big leap, in most of the newer cities these are just
experiments with capital allocations commensurate with outcomes. More than 90%
of our revenues still continue to come from Mumbai (MMR), Pune, Bangalore,
Hyderabad and Ahmedabad. These large towns are holding on to their Covid-19
time revenues.”| Avenue Supermarts : Consolidated Results | | | Quarter ended | Year to Date | Year ended |
|---|
| Particulars | 202209 | 202109 | Var.(%) | 202209 | 202109 | Var.(%) | 202203 | 202103 | Var.(%) |
|---|
| Net Sales (including other operating income) | 10,638.33 | 7,788.94 | 36.58 | 20,676.40 | 12,972.06 | 59.39 | 30,976.27 | 24,143.06 | 28.30 | | OPM (%) | 8.39 | 8.58 | -20 bps | 9.19 | 6.88 | 231 bps | 8.07 | 7.22 | 85 bps | | OP | 892.02 | 668.58 | 33.42 | 1,900.26 | 892.76 | 112.85 | 2,498.50 | 1,743.05 | 43.34 | | Other Inc. | 35.57 | 27.50 | 29.35 | 64.71 | 58.96 | 9.75 | 117.49 | 196.21 | -40.12 | | PBIDT | 927.59 | 696.08 | 33.26 | 1,964.97 | 951.72 | 106.47 | 2,615.99 | 1,939.26 | 34.90 | | Interest | 17.68 | 12.37 | 42.93 | 34.90 | 23.21 | 50.37 | 53.79 | 41.65 | 29.15 | | PBDT | 909.91 | 683.71 | 33.08 | 1,930.07 | 928.51 | 107.87 | 2,562.20 | 1,897.61 | 35.02 | | Depreciation | 161.96 | 116.01 | 39.61 | 306.7 | 223.45 | 37.26 | 498.08 | 414.16 | 20.26 | | PBT | 747.95 | 567.70 | 31.75 | 1623.37 | 705.06 | 130.25 | 2064.12 | 1483.45 | 39.14 | | Share of Profit/(Loss) from Associates | 0 | 0 | - | 0 | 0 | - | 0 | 0 | - | | PBT before EO | 747.95 | 567.7 | 31.75 | 1623.37 | 705.06 | 130.25 | 2064.12 | 1483.45 | 39.14 | | EO Income | 0 | 0 | - | 0 | 0 | - | 0 | 0 | - | | PBT after EO | 747.95 | 567.7 | 31.75 | 1623.37 | 705.06 | 130.25 | 2064.12 | 1483.45 | 39.14 | | Taxation | 62.24 | 149.94 | -58.49 | 294.77 | 191.94 | 53.57 | 571.72 | 384.02 | 48.88 | | PAT | 685.71 | 417.76 | 64.14 | 1328.6 | 513.12 | 158.93 | 1492.4 | 1099.43 | 35.74 | | Minority Interest (MI) | -0.06 | -0.03 | -100.00 | -0.1 | -0.04 | -150.00 | -0.15 | -0.06 | -150.00 | | Net profit | 685.77 | 417.79 | 64.14 | 1328.7 | 513.16 | 158.93 | 1492.55 | 1099.49 | 35.75 | | P/(L) from discontinued operations net of tax | 0 | 0 | - | 0 | 0 | - | 0 | 0 | - | | Net profit after discontinued operations | 685.77 | 417.79 | 64.14 | 1328.7 | 513.16 | 158.93 | 1492.55 | 1099.49 | 35.75 | | EPS (Rs)* | 10.59 | 6.45 | 64.14 | 20.51 | 7.92 | 158.93 | 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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