Avenue Supermarts Ltd Q2FY21 consolidated PAT at Rs. 198.55 crores

Avenue Supermarts Ltd has reported financial results for the period ended September 30, 2020.

Financial Results (Q2 FY20-21) - QoQ Comparison

The company has reported total income of Rs.5358.37 crores during the period ended September 30, 2020 as compared to Rs.3933.78 crores during the period ended June 30, 2020.

The company has posted net profit / (loss) of Rs.198.55 crores for the period ended September 30, 2020 as against net profit / (loss) of Rs.40.09 crores for the period ended June 30, 2020.

The company has reported EPS of Rs.3.04 for the period ended September 30, 2020 as compared to Rs.0.61 for the period ended June 30, 2020.

Financials	Q2 FY20-21	Q1 FY20-21	% Change
Total Income	₹ 5358.37 crs	₹ 3933.78 crs	36.21%
Net Profit	₹ 198.55 crs	₹ 40.09 crs	395.26%
EPS	₹ 3.04	₹ 0.61	398.36%

Financial Results (Q2 FY20-21) - YoY Comparison

The company has reported total income of Rs.5358.37 crores during the period ended September 30, 2020 as compared to Rs.5996.90 crores during the period ended September 30, 2019.

The company has posted net profit / (loss) of Rs.198.55 crores for the period ended September 30, 2020 as against net profit / (loss) of Rs.322.66 crores for the period ended September 30, 2019.

The company has reported EPS of Rs.3.04 for the period ended September 30, 2020 as compared to Rs.5.11 for the period ended September 30, 2019.

Financials	Q2 FY20-21	Q2 FY19-20	% Change
Total Income	₹ 5358.37 crs	₹ 5996.90 crs	-10.65%
Net Profit	₹ 198.55 crs	₹ 322.66 crs	-38.46%
EPS	₹ 3.04	₹ 5.11	-40.51%

Financial Results (6 months ended FY 20-21) - YoY Comparison

The company has reported total income of Rs.9292.15 crores during the 6 months period ended September 30, 2020 as compared to Rs.11824.41 crores during the 6 months period ended September 30, 2019.

The company has posted net profit / (loss) of Rs.238.64 crores for the 6 months period ended September 30, 2020 as against net profit / (loss) of Rs.645.75 crores for the 6 months period ended September 30, 2019.

The company has reported EPS of Rs.3.65 for the 6 months period ended September 30, 2020 as compared to Rs.10.23 for the 6 months period ended September 30, 2019.

Financials	Half-Year Ended FY20-21	Half-Year Ended FY19-20	% Change
Total Income	₹ 9292.15 crs	₹ 11824.41 crs	-21.42%
Net Profit	₹ 238.64 crs	₹ 645.75 crs	-63.04%
EPS	₹ 3.65	₹10.23	-64.32%

Commenting on the performance of the company Mr. Neville Noronha, CEO & Managing Director, Avenue Supermarts Limited, said:

DMart (Brick and Mortar) Business Overview

Lockdown restrictions due to Covid-19 were further eased during this quarter. Within the continued uncertainty from Covid-19, our business has seen improvement and it continues to gradually progress towards prepandemic levels. Month-on-Month sales have improved during this quarter - August was better than July and September was better than August. The highlight being that footfalls continue to be significantly lower than preCovid levels but basket values are significantly higher than pre-Covid levels. Both these data points are trending towards pre-Covid levels. Footfalls are getting better and basket values are reducing month over month.

Two years and older DMart stores did 87.5% of September 2019 sales in the month of September 2020. We have a total of 158 stores which are 2 years or older. Since August, most of our stores are operating at pre-Covid operating hours and some stores are operating longer hours than before Covid-19. Longer hours are to improve social distancing and giving more options to our shoppers.

FMCG and staples demand remains robust. September 2020 sales of all stores exceeded September 2019 sales for FMCG and Staples while General Merchandise and Garments did lesser sales in the same period. However, discretionary consumption has seen significant improvement over Q1FY21. We were at 22.7% revenue contribution from General Merchandise and Apparel business in Q2FY21 as compared to the usual 27.3% contribution for the year. We couldn't sell this category of products for nearly 2 months of Q1FY21 due to regulatory restrictions and once permitted we did insignificant sales due to tightening of discretionary spend by consumers. Almost all of the shopping in Q1FY21 was need based and essential in nature. In light of that, Q2FY21 sales contribution from General Merchandise and Apparel is encouraging.

New Stores Opening

We continue to focus on new store openings and have opened six new DMart stores during the quarter. We have closed two of our Mumbai stores for customers and converted them into fulfillment centers (FC) for our ECommerce business. One each in Mira Road and Kalyan. Both these locations have an alternate DMart store within 4 kms.

DMart Ready

We continue to increase our footprint in Mumbai Metropolitan Region covering additional pin codes. Mira Road and Kalyan FC addition was to deepen our reach and serve customers better in these regions.

We have also expanded our E-Commerce operations in select pin codes of Pune City.

Shares of Avenue Supermarts Ltd was last trading in BSE at Rs.1983.6 as compared to the previous close of Rs. 1977.7. The total number of shares traded during the day was 32408 in over 4197 trades.

The stock hit an intraday high of Rs. 1998 and intraday low of 1969.8. The net turnover during the day was Rs. 64120442.

Source : Equity Bulls

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