Radhakrishna Damani headed Avenue Supermarts Limited (Dmart) reported net profit of 3.14% on an annual basis in the quarter ended March 31, 2022. Fourth quarter consolidated net profit was 427 crore, per compared to Rs 414 crore in the corresponding quarter of last year, the company that owns food and grocery chain Dmart said on Saturday.
Dmart’s total revenue jumped 18.53 percent year-on-year to Rs 8,786 crore from Rs 7,412 crore in the same period last year. Avenue Supermarts’ PAT margin was 4.8% in Q4 FY22 versus 5.5% in Q4 FY21, the company said in a regulatory filing on Saturday, May 14. EBITDA in Q4 FY22 stood at Rs 739 crore, compared to Rs 613 crore in the corresponding quarter last year. EBITDA margin was 8.4% in Q4 FY22, compared to 8.3% in Q4 FY21, according to the regulatory filing of the day.
Speaking about the results, Avenue Supermarts CEO and Managing Director Neville Noronha said January this year started “extremely” well for the company, but the Omicron wave ruined it. “January 2022 started extremely well, but the Omicron wave of Covid-19 then reduced momentum mid-month. These waves generally hurt the high margin and discretionary elements more. As is the trend of the past, recovery takes 40-50 days after restrictions are lifted or the anxiety of a Covid surge subsides. Omicron was a gentler wave and therefore had a significantly lower negative impact,” he said.
“March 2022 again saw a robust recovery and very good like-for-like growth compared to March 2021. Overall, the performance for the quarter and the last two waves of stop-start-stop give us confidence extreme in the company’s ability to recover in the short term,” added Noronha.
Dmart, or Avenue Supermarts, said its FMCG business is recovering well. “The value proposition is clearly seen by our customers in this segment,” he noted in the filing. In the non-FMCG discretionary segment, it is currently difficult to estimate whether the relatively weaker growth is due to secular change This was due to a shift in e-commerce or inflation or a negative economic impact related to Covid much higher for some shoppers, Avenue Supermarts said in the filing.
“We would only be able to give this qualitative interpretation if there are no more Covid closures/restrictions for at least 2 more quarters. The high inflation environment is helping us better manage our costs and deliver relatively better value to buyers,” the Radhakrishna Damani-backed company added.
Commenting on its Dmart Ready e-commerce business, the company said, “After the Omicron wave, the e-commerce business has slowed its growth trajectory. However, in general, we are quite happy and excited about this company. We learn every day. DMart Ready again had a tremendous year. Revenue this year was slightly more than double that of last year.”
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