News

Published: Jan 16, 2023
Updated: Jan 16, 2023

DMart Continues to Outperform Despite Market Challenges, Q3 Earnings Show Positive Growth

Profit Up by 6.6% Despite Market Volatility

Avenue Supermarts, the company behind the popular DMart chain, has reported a rise in profit and revenue for the quarter ending December 2022. Despite market volatility, the company's business model has proven to be resilient, with a 6.7% increase in profit and 25% growth in revenue.

Business Model of Avenue Mart:

DMart operates as a chain of retail stores that offer a wide variety of products including groceries, household essentials, and personal care items. The company's focus on providing customers with high-quality products at competitive prices has helped it to establish a strong foothold in the retail market.

New Ventures:

The company has expanded its e-commerce operations to four new cities and is deepening its presence in 18 existing cities. Additionally, DMart is piloting a pharmacy shop-in-shop, which will complement its brick-and-mortar business using existing store infrastructure.

Results Data with Stats:

The company reported consolidated profit after tax of ₹589.68 crore for the quarter ending December 2022, which represents a 6.7% increase over the corresponding quarter of the previous fiscal. The revenue from operations also increased by 25% to ₹11,569.05 crore. The Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) stood at Rs.965 crore and the EBITDA margin stood at 8.3% in Q3FY23 as compared to 9.4% in Q3FY22. The company also added four new stores in the December quarter.

Outlook:

Despite the challenging market conditions, DMart's CEO Neville Noronha, is optimistic about the company's future growth prospects. He stated that the company's revenues grew by 24.7 percent , and that the FMCG and staples segment continued to outperform the general merchandise and apparel segments. However, he acknowledged that discretionary non-FMCG sales did not perform as well as expected in this quarter.

Results show Resilient Retail Market Performance:

Overall, DMart's Q3 results demonstrate the company's ability to adapt and perform well in a challenging market environment. The company's focus on providing customers with high-quality products at competitive prices, as well as its expansion into new ventures such as e-commerce and pharmacy shop-in-shop, positions it well for future growth. Despite a slight decline in gross margin percentage, DMart's strong financial performance and strategic investments indicate that it is well positioned to capitalise on opportunities in the retail market.