D-Mart parent Avenue Supermarts Q3 profit rises 65.77% at Rs251.76 crore

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Mumbai: Avenue Supermarts, which runs the D-Mart supermarkets chain, on Thursday posted a 65.77% jump in its net profit at Rs251.76 crore on a standalone basis for the quarter ended 31 December.

The company had reported a net profit of Rs151.87 crore in the corresponding quarter a year ago.

Its total income in the quarter under review stood at Rs4,108.47 crore, up 22.71%, against Rs3,347.85 crore in the year-ago period, Avenue Supermarts said in a BSE filing.

Commenting on the financial performance, Neville Noronha, CEO and managing director, Avenue Supermarts said, “Gross Margin increase is due to improvement in sales mix and efficiency of centralised procurement. Growth in this quarter appears to be lower as compared to previous year quarter because of demonetisation base effect. Growth in December 2016 quarter was significantly higher than the growth of FY 16-17.”

Total revenue for nine months ended December stood at Rs11,201 crore, as compared to Rs8,770 crore in the same period last year. Its net profit between April and December grew by 60% to Rs618 crore, as compared to Rs386 crore for the same period last year.

Avenue Supermarts, listed on the stock exchanges with a blockbuster listing in March last year, making Radhakishan Damani the founder of the company and a low-profile investor a part of Indias richest 20 club.

The board approved the acquisition of 50.79% paid-up share capital of Avenue E-Commerce, an associate company of Avenue Supermarts Limited. Post acquisition, Avenue E-Commerce shall become a wholly-owned subsidiary of Avenue Supermarts, the company said.

The company scrip ended at Rs1156.95, up 1.19% on the BSE.livemint