Avenue Supermarts Ltd, which owns and operates the retail chain D-Mart, reported on Saturday a 3.11 percent increase in its consolidated net profit to Rs 426.75 crore for the fourth quarter, ending March 2022.
The company had delivered a net profit of Rs 413.87 crore in the January-March quarter a year ago, Avenue Supermarts said in a BSE application.
Its operating income increased 18.55 percent to Rs 8,786.45 crore during the period under review from Rs 7,411,68 crore in the corresponding quarter of the previous financial year.
Avenue Supermarts’ total expenses rose 18.71 percent to Rs 8,210.13 crore in Q4 FY2021-22 against Rs 6,916.24 crore a year ago.
For the fiscal year ending March 2022, Avenue Supermarts’ consolidated net income grew by 35.74 percent to $ 1,492.40. It had reported a net profit of Rs 1,099.43 crore in the previous financial year.
In 2021-22, its operating income increased by 28.3 percent to Rs 30,976.27 crore. It was Rs 24,143.06 crore in FY21.
Avenue Supermarts CEO and MD Neville Noronha said: “The month of March 2022 again had a robust recovery and very satisfactory growth compared to March 2021. Overall, the quarterly results and the last two waves of stop-start-stop give us extreme confidence in the company’s resilience to to recover in the short term ”.
The D-March FMCG business is recovering well, he added.
“The value proposition is clearly seen by our customers in this segment. Within the discretionary non-FMCG segment, it is currently difficult to estimate whether the relatively lower growth is due to a secular change over time due to the e-commerce shift or inflation or due to significantly higher Covid-related negative economic impact for certain shoppers, “Noronha said.
Speaking of DMart’s growth in the brick and mortar segment for FY22, he said the company ended the year with growth across key financial parameters such as revenue, EBITDA and PAT.
“Two years and older, DMart stores grew by 16.7 percent during FY2022 compared to FY 2021. We have 214 stores that are 2 years or older. Our sales from General Merchandise and Apparel increased slightly to 23.40 percent compared to 22.90 percent in the previous year, ”he added.
In FY22, D-Mart opened 50 additional stores, bringing the total number to 284 stores.
“Our store footprint continues to grow across the country. We had a record opening this year, primarily due to delayed openings in the previous year due to Covid,” he said.
Its e-commerce company DMart Ready also had a gradual expansion during the year, which is present in 12 cities across the country.
“After the Omicron wave, the e-commerce business has slowed its growth path. But overall, we are quite happy and excited about this business. We learn every single day. DMart Ready has once again had a fantastic year. Topline sales this year were a little more than that double of last year, “Noronha said.
At a basic level, D-Mart believes that for groceries, e-commerce is a channel of convenience, while brick and mortar are still the channel of joy, apart from the effort to reach the store and the time to wait at the checkout.
“Each has its own unique magic. We will operate both channels to the best of our ability with a mindset to improve these principles and ensure that the value to the shopper remains at the top,” he said.