Avenue Supermart - Q1FY23 Result - First Cut - Prabhudas Lilladher

Mr. Amnish Aggarwal - Director - Research at Prabhudas Lilladher.

Avenue Supermarts 1QFY23: Revenue in-line; Beat on margins; Strong performance from new stores

(CMP: Rs 3955 | Buy)

- Consol Revenues grew by 93.7% YoY to Rs100.4bn (PLe:Rs100.3bn).
- Gross margins expanded by 324bps YoY to 16.3% (PLe:14.7%).
- EBITDA grew by 349.7% YoY to Rs10.1bn (PLe:Rs8.6bn). Margins expanded by 572bps YoY to 10%. (PLe:8.6%).
- Cost of Retail contracted by -248bps YoY to 6.3%.
- Adj PAT grew by 574.1% YoY to Rs6.4bn (PLe:Rs5.35bn).
- Margins improved largely on back of increase in share of general merchandise and apparel category
- Dmart Ready: Imputed Revenues grew by 52.7% YoY to Rs2.3bn.

Other Highlights

- Added 10 stores, taking the total stores to 294 with Retail business area of 12.1 mn sq ft.

- New stores opened in the last 2 years of covid has done extremely well this quarters as it was first full quarter of zero covid disruption

- General Merchandise and Apparel saw better traction than previous quarter but still has some overhang of the Covid-19 led disruptions and acute inflationary impact.

- In spite of inflationary pressures, D'Mart witnessed positive volume growth in addition to value growth of discretionary products in relatively older stores

The stock currently trades at 110x/85x our FY23E/FY24E earnings. We currently have a Buy rating.

Shares of Avenue Supermarts Limited was last trading in BSE at Rs. 3942.05 as compared to the previous close of Rs. 3849.65. The total number of shares traded during the day was 22821 in over 3695 trades.

The stock hit an intraday high of Rs. 3974.00 and intraday low of 3852.00. The net turnover during the day was Rs. 89171531.00.

Source : Equity Bulls

Keywords

AvenueSupermarts INE192R01011 DMART DepartmentStores Q1FY23 Result FirstCut