Companies

DMart Q3 net profit rise 16.5 per cent to Rs 447 crore

Our Bureau Mumbai | Updated on January 10, 2021

December didn’t trend as well as the festival months of October and November

The net profit of Radhakrishnan Damani-led DMart rose 16.5 per cent to Rs 447 crore in the third quarter of FY21 compared to the previous year.

The hypermarket chain’s total revenues rose to Rs7,542 crore for the quarter ended December 31, 2019, compared to Rs 6,809 crore from a year ago.

DMart’s third quarter revenue was hit by restricted store operations in certain cities post-Diwali due to night curfews, said Neville Noronha, CEO & Managing Director, Avenue Supermarts Limited.

The total revenue for the nine months of FY21 was Rs 16,731 crore, compared to Rs18,614 crore in the same period last year.

The company’s Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) during the nine months was Rs1,130 crore, compared to Rs1,711 crore from a year earlier. Its EBITDA margin was 6.8 per cent in the nine months compared to 9.2 per cent in FY20.

Noronha said that the quarter has seen improvement in its brick-and-mortar business and financial metrics due to the festive shopping, despite the COVID-19 pandemic.

However, December didn’t trend as well as the festival months of October and November.

“Restricted store operations in certain cities post-Diwali due to night curfews and weekend closure led to significantly larger declines in those stores versus the same period last year,” he said.

The company runs 221 stores with a retail business area of 8.17 million sq. ft.

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Published on January 10, 2021
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