Q1FY22 Result Update - Avenue Supermarts - ICICI Direct

- Operating performance was a miss on consensus estimates as EBITDA margins came in lower than expected

- Reported revenue de-growth of 30% QoQ to Rs. 5183.2 crore (up 33.5% YoY)

- Gross margins declined 170 bps QoQ to 13.1%, with EBITDA margins contracting 390 bps QoQ to 4.3%

- Lower other income (down 35% QoQ) further impacted profitability with PAT coming in at Rs. 95.4 crore (Q4FY21: Rs. 413.9 crore, Q1FY21: Rs. 40.1 crore)

- Added four new stores taking total count to 238 stores (9.0 mn sq ft)

Key triggers for future price performance:

- We anticipate store addition trajectory will accelerate in FY22, FY23E and bake in 80 incremental store additions (addition of ~ 5.0 mn sq ft)

- Robust liquidity position and healthy operating cashflows to provide impetus to store addition pace

- Expect revenue recovery to pick up pace from H2FY22 onwards and model in revenue and earnings CAGR of 21%, 25%, respectively in FY20-23E

- Will continue generating industry best RoIC of ~23% in FY23E

For details, click on the link below: Link to the report

Shares of Avenue Supermarts Ltd was last trading in BSE at Rs.3347.05 as compared to the previous close of Rs. 3378.95. The total number of shares traded during the day was 109734 in over 7769 trades.

The stock hit an intraday high of Rs. 3399 and intraday low of 3311.7. The net turnover during the day was Rs. 369268861.

Source : Equity Bulls

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