The retail chain DMart’s operator, Avenue Supermarts, announced on July 15 a consolidated net profit of 658.71 crore for the first quarter of the fiscal year 2023–24, an increase of 2% over the same quarter a year earlier.
In comparison to the prior quarter, the company’s net profit increased by 43% to 460.10 crore. Consolidated revenue from operations increased by 18.2 percent YoY (year over year) to $11,865.44 crore from $10,038.07 crore in the prior year, according to the company. From the previous quarter’s $10,594.11 crore, the revenue increased by 12%.
Following the conclusion of the Friday session last week, the Avenue Supermarts share price on the NSE finished at levels of 3,840 rupees per share.
Avenue Supermarts reported that its revenue from operations for the quarter ended March 2023 was $10,337 crore for the fiscal year 2022–2023; this represents a 20% increase from the corresponding quarter last fiscal’s reported revenue from operations of $8,606.09 crore. According to company management, there would have been 324 outlets overall end of March 31, 2023.
While the revenue of DMart has risen 18% percent, the net profit has risen by only 2%. This might reflect that the company hasn’t passed on increased input prices to customers in the form of increased price. Alternatively, it may also imply an increase in indirect costs such as interest or salaries.
