DMart's Q4 net profit rises 7.8 pc to Rs 460 cr

NEW DELHI: Avenue Supermarts Ltd, which owns and operates the retail chain DMart, on Saturday reported an increase of 7.81 per cent in its consolidated net profit at Rs 460.10 crore for the fourth quarter ended March 31, 2023.

The company had posted a net profit of Rs 426.75 crore in the January-March quarter a year ago, Avenue Supermarts said in a BSE filing.

Its revenue from operations was 20.57 per cent higher at Rs 10,594.11 crore during the quarter under review as against Rs 8,786.45 crore in the corresponding quarter last fiscal.

Avenue Supermarts' total expenses were at Rs 10,002.21 crore, up 21.82 per cent in Q4FY23, as against Rs 8,210.13 crore in the corresponding quarter a year ago.

Total income of Avenue Supermarts in the March quarter was at Rs 10,627.18 crore, up 20.5 per cent.

For the fiscal year ended March 2023, Avenue Supermarts' net profit jumped 59.36 per cent to Rs 2,378.34 crore. It had reported a net profit of Rs 1,492.40 crore in the previous fiscal.

Its consolidated revenue from operations was at Rs 42,839.56 crore in FY23, 38.3 per cent higher than the previous fiscal year.

The company's CEO & Managing Director Neville Noronha said revenue growth of FMCG and staples continues to outperform general merchandise and apparel.

''Lower consumer spending in General Merchandise and Apparel continues and has impacted the margin mix downwards,'' he added.

Two years and older DMart stores grew 24.2 per cent during FY 2023 as compared to FY 2022.

''These same stores grew at 11 per cent in the second half of FY 2023 vis-a-vis second half of FY 2022. We have 234 stores that are 2 years or older,'' Noronha said.

In FY23, the company continued its store expansion by adding 40 new stores, taking the total count to 324 as of March 31, 2023.

On its e-commerce business arm DMart Ready, the company said, it has continued its expansion in existing 22 cities.

''We cumulatively expanded our operations in 10 new cities during FY 2023,'' said Noronha.

Besides, it has also commenced operations of its pharmacy shop-in-shop through one of its subsidiaries Reflect Healthcare and Retail in Q4 in Mumbai.

Promoted by Radhakishan Damani and his family, DMart retails basic home and personal products across markets, which includes Maharashtra, Gujarat, Andhra Pradesh, Madhya Pradesh, Karnataka, Telangana, Chhattisgarh, NCR, Tamil Nadu, Punjab and Rajasthan.

Headquartered in Mumbai, ASL also operates an online sales channel DMart Ready, which delivers goods at doorsteps in selected cities.