- 16 May 2022
- ICICIdirect Research
AVENUE SUPERMARTS REPORTS IN LINE OPERATIONAL PERFROMNANCE IN Q4FY22
DMART - 3817 Change: -12.15 (-0.32 %)News: As guided by the management in its pre-quarterly update, Avenue Supermarts reported revenue growth of 18.5% YoY to Rs. 8786.5 crore (2-year CAGR: 19%). Company during the quarter added 21 new D-Mart stores (FY22: 50) taking the total store count to 284. Added ~ 1.2 million sq. ft. space in Q4FY22 (FY22: 2.7 million) taking. EBITDA margins remained flattish YoY at 8.4% (I-direct estimate: 8.2%). Absolute EBITDA grew by 20% YoY to Rs. 739.3 crore (I-direct estimate: Rs. 722.3 crore).
Views: The key positive highlight remained robust store addition during Q4FY22 (the positive impact for which should be visible in upcoming quarters). For FY22 SSSG recovered to 16.7% after declining by ~13.1% in FY21. Revenue per sq. ft. continued to stay below pre-covid levels at Rs. 27454/sq. ft. (up 0.5% YoY, FY20: Rs. 32879/sq. ft.). Company has witnessed healthy recovery in March 2022 and inflation is allowing to deliver relatively better value to shoppers and manage costs better.
Impact: Neutral