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Avenue Supermarts Ltd (D-Mart) had reported a 17 per cent rise in its consolidated net profit at ₹690 crore for the quarter ended December 2023, as compared to ₹590 crore in the corresponding quarter of last year, the company disclosed in its press statement on Monday.
Its revenue from operations grew 17.31 per cent to ₹13,572.47 crore during the quarter under review against ₹11,569.05 crore in the corresponding quarter of the last fiscal.
Its EBITDA for Q3FY24 stood at ₹1,120 crore, as compared to ₹965 crore in the corresponding quarter of last year.
Commenting on the performance of the company, Neville Noronha, Avenue Supermarts’ CEO & Managing Director, said, “We ended Q3 FY2024 with a revenue growth of 17.2 per cent as compared to the corresponding quarter of last year. Contribution from General Merchandise and Apparel has stabilised and trends are encouraging post Diwali.”
“This time the festive season sales were lower than expected in Non-FMCG. Within FMCG, agri-staples (ex-edible oil) are going through significantly high inflation. We opened five new stores during the quarter. Our total stores now stand at 341,” Noronha added.
In a separate stock exchange filing on Sunday, the company informed that it had opened a new store at Kamptee, Nagpur, Maharashtra.
DMart stock rose 2.27 per cent on the NSE, trading at ₹3,928.30 as of 9:15 am.
Commenting on the stock, Prabhudas Lilladher said that the stock is on a recovery path, and added, “We believe the drag in the performance of Non-FMCG product is temporary and should bounce back with easing inflation over next one-two quarters. We estimate six per cent EPS growth in FY24 but 20 per cent CAGR over FY23-26. D’Mart has a huge runway to grow with 1500+ store potential in duopoly market and scale up in D’Mart Ready. We assign a DCF-based target price of ₹4,484 (had cut EPS by 3.6-5 per cent and target from ₹4724 in preview). Maintain BUY, although expect returns to be back-ended.”
Meanwhile, brokerage firm Motilal Oswal said, “We have marginally cut PAT estimates by 3 per cent/1 per cent for FY25E/FY26E. Subsequently, we arrive at our TP of ₹4,700 and reiterate our BUY rating on the stock.”
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