Radhakishan Damani-backed Avenue Supermarts posts a consolidated net profit of Rs. 427 crore (Q4FY22) up by 3.14% for the quarter ended March 31, 2022 414 crore in the same quarter last year. PAT margin came in at 4.8% in Q4FY22 as compared to 5.5% in Q4FY21
consolidated total revenue stood at 8,786 crore Q4FY22 Compared to 7,412 crore in the same period last year. During the quarter, EBITDA was 739 crores as compared to 613 crore in the corresponding quarter of last year. EBITDA margin was 8.4% in Q4FY22, as against 8.3% in Q4FY21.
Neville Noronha, CEO and Managing Director, Avenue Supermarts Ltd. said, “January 2022 started very well but then the Omicron wave of COVID-19 dampened the momentum in the middle of the month. These waves are usually high margins and discretionary commodities. As the trend in the past, it takes 40-50 days to recover after the restrictions are lifted or the concerns of the Covid wave subside. Omicron was a mild wave and therefore had a very low negative impact “
“There was a strong recovery again in the month of March 2022 and was very satisfactory for the same growth as compared to March 2021. In general, the quarter performance and the last two waves of stop-start-stops gave us immense confidence in the resilience of the business to recover. Gives confidence. Short term,” Noronha said.
For the full financial year 2012, the net profit was 1,492 crore for FY22 as compared to 1,099 crore in FY21. The PAT margin was 4.8% in FY 2012 as compared to 4.5% in FY 2011. The total revenue for FY22 was 30,976 crore, as compared to 24,143 crore in the same period last year. Meanwhile, EBITDA arrived 2,499 crore, as compared to 1,743 crore during FY21. EBITDA margin stood at 8.1% in FY22, as against 7.2% in FY21.
On DMart’s brick and mortar business, Avenue Supermarts highlighted that the two-year and older DMart stores grew by 16.7% during FY 2022 as compared to FY 2021. They have 214 stores that are 2 years old or more. Its sales from general merchandise and apparel grew slightly at 23.40% compared to 22.90% in the previous year. However, this may not be representative of the post-Covid steady-state contribution from these non-FMCG categories. Avenue Supermarts remains more optimistic about the business going forward.
DMart’s (brick and mortar) business footprint has expanded. The company opened 50 additional stores during the year taking its total to 284 stores.
Going forward, Noronha said, “Our FMCG business is recovering well. The value proposition is clearly being seen by our customers in this segment. In the discretionary non-FMCG segment, it is difficult to predict right now.” Whether there is relative low growth. Because of a secular change over time due to ecommerce shifts or inflation, or because of the significantly higher COVID-related negative economic impact for some shoppers.”
“We will be able to give that qualitative explanation only if there are no more covid shutdowns/restrictions in at least 2 more quarters. The high inflation environment is helping us manage our costs better and also provide better prices to shoppers Providing,” added the CEO and MD.
Shares closed on Avenue Supermarts on Friday below 3234.95 27.35 or 0.84% on BSE. Shares will focus in next week’s trading session after their fourth-quarter earnings.