Avenue Supermarts Ltd’s net profit and revenue in the March quarter rose on year but fell sequentially due to lower consumer spending on apparel and general merchandise which also had an adverse impact on the margin mix.
The retailer which operates stores under D’Mart, reported net profit for the March quarter at ₹505 crore, up 8.3 per cent on year, while revenue was 20 per cent higher at ₹10,337 crore. Both net profit and revenue fell 21.2 per cent and 8.6 per cent sequentially.
For the full year FY23, the company’s net profit rose 58.2 per cent to ₹2,556 crore and the revenue from operations increased 37.8 per cent to ₹41,833 crore.
In the quarter, operating profit was 5.4 per cent higher at ₹782 crore while for the year it was higher by 46.3 per cent at ₹3,659 crore. During the March quarter, the company added 18 stores, and, in the year, it added 40 stores to end with 324 outlets.
FMCG aids growth
The company said that the revenue during the year was aided by growth in FMCG categories and staples that had outperformed.
Revenues from D’Mart stores that were two years and older grew by 24.2 per cent in FY23 as compared to FY22. These same stores grew at 11 in per cent in the second half of FY23 from year-ago. The company has 234 stores that fall in this category.
The company is also expanding its e-commerce business through DMart Ready and entered 10 more cities in the year, adding to its existing 22 cities.