Avenue Supermart shares fell 1% in early trading on July 17 after the company reported a 140-basis-point decline in its EBITDA margin for the June quarter.
The EBITDA margin for the April-June quarter was 8.9%, down 140 basis points from a year ago, the company said.
Neville Noronha, Chief Executive Officer and Managing Director of Avenue Supermarts Limited, said after the financial results announcement, “The overall gross profit margin has declined compared to the same period last year. This is mainly due to apparel and miscellaneous goods. This is because the contribution to the sales of the product is low.” He added that the overall commodity contribution has recovered and is trending toward pre-pandemic levels.
Avenue Supermart, which operates D-Mart, announced its financial results for the first quarter of fiscal year 2024 on July 15. The company’s non-consolidated net profit for the first quarter of fiscal year 2024 increased by 2.3% year-on-year to Rs.695 million. The company’s standalone operating revenue for the same period increased by 18.1% year-on-year to Rs.11,584 billion.
EBITDA for the first quarter of fiscal year 2024 increased by 2.8% year-on-year to Rs 1,036 million. Avenue Supermart’s April-June net profit fell 8% below analyst expectations. The average consensus among the four brokerage firms is that Avenue Supermart’s net profit is expected to be Rs.715 crore. The stock was trading 0.8% lower at Rs 3,808 at 9:27 am on the National Stock Exchange. Shares of Avenue Supermart are down nearly 6% since January 1. The chain retailer opened three of his stores during the quarter, bringing the total number of stores to 327 as of June 30.
Lemon Tree Hotels trades down despite launch of 95th property
September 25, 2023
