Avenue Supermarkets Limited, which owns and operates retail chain D-Mart, increased its consolidated net profit by 3.11 percent to Rs 426.75 crore for the fourth quarter ended March 2022.
The company posted a net profit of Rs 413.87 crore in the January-March quarter a year ago, Avenue Supermarkets said in a BSE filing.
Its revenue from operations increased by 18.55 per cent to Rs 8,786.45 crore in the quarter under review from Rs 7,411.68 crore in the same quarter of the previous fiscal.
Avenue Supermarket’s total expenses rose 18.71 per cent to Rs 8,210.13 crore in the fourth quarter of FY2021-22 from Rs 6,916.24 crore a year ago.
For the fiscal year ended March 2022, Avenue Supermarket’s consolidated net profit rose 35.74 percent to Rs 1,492.40 crore. It had reported a net profit of Rs 1,099.43 crore in the previous financial year.
In 2021-22, its revenue from operations jumped 28.3 per cent to Rs 30,976.27 crore. In FY21, it was Rs 24,143.06 crore.
Neville Naronha, CEO and MD of Avenue Supermarkets, said: In general, the last two waves of quarterly performance and stop-start-stop give us extreme confidence in the resilience of the business to recover in the short term. “
D-Mart’s FMCG business is recovering well, he added.
“The price offer is clearly being seen by our customers in this segment. In the discretionary non-FMCG segment, so far, it is difficult to predict comparatively low growth due to secular changes over time due to e-commerce shifts or inflation, or the negative economic impact of significantly higher covid. Specific buyers, ”said Naronha.
Talking about DMart’s growth in the brick and mortar division for FY22, he said the company ended the year with growth across key financial parameters of revenue, EBITDA and PAT.
“Two-year-olds and DMart stores grew 16.7 percent in FY2022 compared to FY 2021. We have 214 stores that are 2 years or more. Our sales from general merchandise and apparel increased slightly to 23.40 per cent from 22.90 per cent in the previous year, ”he added.
In FY22, D-Mart opened 50 additional stores, taking a total of 284 stores.
“Our store footprints continue to grow across the country. We had a record opening this year due to a delay in opening last year due to Covid, ”he said.
Its e-commerce business, DMart Ready, also expanded steadily throughout the year, with a presence in 12 cities across the country.
“After the Omicron Wave, the e-commerce business has slowed down its growth trajectory. However, in general, we are quite happy and excited about this business. We are learning every day. Demart Ready has had another great year. Topline sales this year were slightly more than double last year, ”said Naronha.
On a basic level, D-Mart believes that for the grocery store, e-commerce is a channel of convenience while bricks and mortar are still a channel of joy, without the effort to reach the store and wait for checkout.
“Each has its own unique magic. We will operate both channels to the best of our ability with a mindset to improve these policies and maintain maximum value to buyers, ”he said.