Stock Market update: Avenue Supermarket Ltd shares down by 1.64% despite strong Q3 results

The share price of Avenue Supermarkets went down by 1.64% in early trade on Monday.

Shares of Avenue Supermarket Limited, owner of DMart has witnessed a decline in its share price by 1% early this morning. The share price hit at Rs 4666.00 per equity share and declined by 657.35 points, that is, 1.42% on January 10, 2022, 10:45 AM IST.

Whereas, on December 14, 2021, the shares of Avenue Supermarkets Ltd hit a high of Rs 4814.40 per equity share. Furthermore, the company announced its Q3 results ending December 2021 showcasing that the net profit of Avenue Supermarkets Ltd increased 32% to Rs. 552.53 crore according to the stock exchange file. Adding on to this, net revenue rose 18% to Rs 9217.76 crore, against the estimated Rs 9312.83 crore.

Also, in the Q3 results, the company mentioned that it had added 17 more stores, making up a total of 263 stores as of December 31, 2021.

“Overall gross margins are marginally lower due to mix deterioration,” said Neville Noronha, chief executive officer and managing director of Avenue Supermarkets Ltd. “General merchandise and apparel business is consistently seeing relatively lesser sales contribution while essentials and fast-moving consumer goods are doing better,” he further said.

“We continue to take all precautions to ensure every shopper, employee and partner is operating in a safe environment,” Noronha said.

DMart, headquartered in Mumbai is an Indian retail corporation and operates a chain of supermarkets across India. As of 2019, DMart had a total of 7,713 permanent employees and 33,597 employees hired on a contractual basis. And, the company has a market capitalization of Rs. 3,01,351 crore.

 

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