- 04 Jul 2022
- ICICIdirect Research
AVENUE SUPERMARTS REPORTS STEADY REVENUE GROWTH
DMART - 5220 Change: 15.05 (0.29 %)News: Avenue Supermarts in a press release reported QoQ topline growth of 12% ( YoY growth 90% owing to low base due to impact of Covid) to Rs. 9806 crore. The company during the quarter added 10 new stores taking the total store count to 294 D-Mart outlets. As per our calculations, revenue/sq ft. for Q1FY23 was at ~ Rs. 8100 vs. Rs. 9100 in Q1FY20 (90% of pre Covid levels)
Views: On a three year CAGR basis, revenue was up 19% while square feet addition was up ~ 24% during the same period. A key monitorable would be the recovery in discretionary product portfolio (non-FMCG) as it could aid in improving margins. The company’s store addition continues to be strong with 10 new stores added during the quarter, which is in line with its target of opening ~ 40 stores in FY23. Continued pace of store addition would accelerate the revenue growth, going forward
Impact: Neutral