Avenue Supermarts Ltd Q1FY22 consolidated PAT at Rs. 95.37 crores

Avenue Supermarts Ltd has reported financial results for the period ended June 30, 2021.

Financial Results (Q1 FY 2021-22) - QoQ Comparison

The company has reported total income of Rs.5214.58 crores during the period ended June 30, 2021 as compared to Rs.7459.80 crores during the period ended March 31, 2021.

The company has posted net profit / (loss) of Rs.95.37 crores for the period ended June 30, 2021 as against net profit / (loss) of Rs.413.88 crores for the period ended March 31, 2021.

The company has reported EPS of Rs.1.46 for the period ended June 30, 2021 as compared to Rs.6.34 for the period ended March 31, 2021.

Financials	Q1 FY2021-22	Q4 FY20-21	% Change
Total Income	₹ 5214.58 crs	₹ 7459.80 crs	-30.1%
Net Profit	₹ 95.37 crs	₹ 413.88 crs	-76.96%
EPS	₹ 1.46	₹ 6.34	-76.97%

Financial Results (Q1 FY 2021-22) - YoY Comparison

The company has reported total income of Rs.5214.58 crores during the period ended June 30, 2021 as compared to Rs.3933.78 crores during the period ended June 30, 2020.

The company has posted net profit / (loss) of Rs.95.37 crores for the period ended June 30, 2021 as against net profit / (loss) of Rs.40.09 crores for the period ended June 30, 2020.

The company has reported EPS of Rs.1.46 for the period ended June 30, 2021 as compared to Rs.0.61 for the period ended June 30, 2020.

Financials	Q1 FY2021-22	Q1 FY2020-21	% Change
Total Income	₹ 5214.58 crs	₹ 3933.78 crs	32.56%
Net Profit	₹ 95.37 crs	₹ 40.09 crs	137.89%
EPS	₹ 1.46	₹ 0.61	139.34%

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: "Q1 FY 2021-22 saw a much stronger second wave of Covid-19 restrictions. We lost significantly more days or had higher restriction on number of hours of store operations compared to the same period last year.

DMart (Brick and Mortar) Business Overview

Revenues have grown by 31% over the corresponding quarter of last year. This is because the lockdown periods were at different times in different regions during the quarter. Some cities announced early lockdowns and continue to have stringent measures in place even now while some cities eased the restrictions within 3-4 weeks after their early lockdown. There were also cities which announced lockdowns much later and are now in the process of relaxing them. Despite lesser hours of operations this time, we had more customer footfalls than in the same period last year and this has translated into higher sales. One of the key reasons for this is that even though restrictions on operations were more severe, personal mobility was relatively less stringent than last time. Additionally, we also had 22 new stores that were opened post Q1 FY 2020-21.

Lockdown measures are now gradually reducing across multiple cities. Across these multiple periods of lockdowns we have come to realize that a store needs at least 45 days of unhindered operational time to get back to pre-Covid sales momentum.

We have not seen any significant impact on our supply chain during the quarter. Our inventory is also gradually moving towards normal levels. Construction activity has also commenced at all our sites.

DMart Ready

The DMart Ready business continued its gradual expansion across the MMR region, Ahmedabad, Pune, Bangalore and Hyderabad. Thus far the results on topline are very encouraging. The second wave has given further impetus to the business.

Conclusion

We continue to follow all safety protocols across our premises. At least 94% of all our eligible employees have taken their first dose of vaccination and more than 98% of our eligible storefront employees in at least 90% stores have taken their first dose of vaccination. Vaccine availability has significantly improved across the country except for some pockets. We will continue to monitor this closely and will continue to encourage all eligible employees to get fully vaccinated.

Making workplaces safe for our employees and shoppers is our number one priority. We are extremely grateful to our front line teams and their leaders. They demonstrate courage, humility and a deep sense of service. They define what DMart represents in the regions and communities where we operate."

Shares of Avenue Supermarts Ltd was last trading in BSE at Rs.3385 as compared to the previous close of Rs. 3388. The total number of shares traded during the day was 6647 in over 1348 trades.

The stock hit an intraday high of Rs. 3399 and intraday low of 3363.9. The net turnover during the day was Rs. 22472721.

Source : Equity Bulls

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