Avenue Supermarts Ltd, the company that owns and operates the retail chain D-Mart, has reported a 9.09% decrease in consolidated net profit for the second quarter ending on September 30. The net profit for this quarter was Rs 623.35 crore, down from the Rs 685.71 crore recorded during the same period in the previous fiscal year. This decline in profit was primarily attributed to reduced contributions from the general merchandise and apparel business, which adversely impacted gross margins.
Despite the dip in profit, Avenue Supermarts witnessed a significant increase in revenue from operations during the quarter under review. Revenue surged by 18.66% to reach Rs 12,624.37 crore, compared to Rs 10,638.33 crore in the corresponding quarter of the previous financial year.
The total expenses for Q2FY24 amounted to Rs 11,809.35 crore, marking an 18.97% increase. The total income for Avenue Supermarts during the quarter stood at Rs 12,661.29 crore, reflecting an 18.61% rise. For the first half of the current financial year, the company’s revenue from operations reached Rs 24,489.81 crore, with a net profit of Rs 1,282.06 crore.
Avenue Supermarts reported a Profit-After-Tax (PAT) margin of 5.2% for the first half of FY24, down from 6.4% in H1FY23. CEO & MD Neville Noronha commented, “Q2 FY2024 saw revenue growth of 18.5% compared to the corresponding quarter of the previous year. Our gross margins continue to be lower compared to the same period in the previous year due to a reduced contribution from higher-margin general merchandise and apparel business.”
During the June quarter, D-Mart expanded its footprint by opening nine new stores, bringing the total count to 336. D-Mart operates across multiple states in India, including Maharashtra, Gujarat, Daman, Andhra Pradesh, Karnataka, Telangana, Tamil Nadu, Madhya Pradesh, Rajasthan, NCR, Chhattisgarh, and Punjab.