Avenue Supermarts Ltd share Price

Avenue Supermarts (ASL) operates the supermarket chain under ‘D-Mart’ brand with a core focus on value retailing. D-Mart, through its proven business model, has been able to maintain consistent profitability and remains an exceptional performer in its peer group.

• D-Mart has progressively enhanced its return ratios (RoIC: 20%+) despite being capital intensive (follows ownership model)
  • Robust store operating metrics (break even in 18-24 months of its operations and one of the industry’s best revenue/sq ft: ₹ 30000+)

In line operational performance with margins a tad better than estimates.

• Posted revenue growth of 19% YoY to ₹ 8786.5 crore (two year CAGR: 19%)
• Gross margins improved marginally by 20 bps YoY to 15.0% with EBITDA margins staying flattish YoY at 8.4%. Absolute EBITDA grew 20.7% YoY to ₹ 739.3 crore
• PAT growth was restricted at 3% YoY to ₹ 426.8 crore owing to lower other income and higher depreciation expenses
• Store addition trajectory accelerated materially in Q4FY22 as it added 21 new stores taking total store count to 284 spread across 11.5 million sq ft

Q4FY23 Quarterly & FY23 Annual Result Announced for Avenue Supermarts Ltd.

Department Stores company Avenue Supermarts announced Q4FY23 & FY23 results:

• Standalone Q4FY23:
  • Total Revenue stood at Rs 10,337 crore, YoY growth of 20.1%
  • EBITDA of Rs 782 crore; YoY growth of 5.4%
  • PAT stood at Rs 505 crore; YoY growth of 8.3 %
  • Basic EPS for Q4FY23 stood at Rs 7.80, as compared to Rs 7.20 for Q4FY22
  • 18 stores were added in Q4FY23
  • PAT margin stood at 4.9% in Q4FY23 as compared to 5.4% in Q4FY22
  • Basic Earnings per share (EPS) for Q4FY23 stood at Rs 7.80, as compared to Rs 7.20 for Q4FY22
• Standalone FY23:
  • Total Revenue stood at Rs 41,833 crore, with YoY growth of 37.8%
  • EBITDA of Rs 3,659 crore; YoY growth of 46.3%
  • PAT stood at Rs 2,556 crore; YoY growth of 58.2%, (includes tax adjustment of prior years of Rs 139 crore)
  • Basic EPS for FY23 stood at Rs 39.46, as compared to Rs 24.95 for FY22
  • 40 stores were added in FY23
  • PAT margin stood at 6.1% in FY23 as compared to 5.3% in FY22
  • Basic Earnings per share (EPS) for FY23 stood at Rs 39.46, as compared to Rs 24.95 for FY22
• Consolidated Q4FY23:
  • Total Revenue for Q4FY23 stood at Rs 10,594 crore, as compared to Rs 8,786 crore in Q4FY22
  • EBITDA in Q4FY23 stood at Rs 772 crore, as compared to Rs 739 crore in Q4FY22
  • EBITDA margin stood at 7.3 % in Q4FY23 as compared to 8.4% in Q4FY22
  • Net Profit stood at Rs 460 crore for Q4FY23, as compared to Rs 427 crore in Q4FY22
  • PAT margin stood at 4.3% in Q4FY23 as compared to 4.8% in Q4FY22
  • Basic Earnings per share (EPS) for Q4FY23 stood at Rs 7.10, as compared to Rs 6.59 for Q4FY22
• Consolidated FY23:
  • Total Revenue for FY23 stood at Rs 42,840 crore, as compared to Rs 30,976 crore in FY22
  • EBITDA in FY23 stood at Rs 3,637 crore, as compared to Rs 2,499 crore during FY22
  • EBITDA margin stood at 8.5% in FY23 as compared to 8.1% in FY22
  • Net Profit stood at Rs 2,378 crore for FY23, as compared to Rs 1,492 crore in FY22
  • PAT margin stood at 5.5% in FY23 as compared to 4.8% in FY22
  • Basic Earnings per share (EPS) for FY23 stood at Rs 36.72 as compared to Rs 23.04 for FY22

Commenting on the performance of the company Neville Noronha, CEO & Managing Director, Avenue Supermarts, said: “We ended FY 2023 with growth across our key financial parameters of Revenue, EBITDA, and PAT. Revenue growth of FMCG and staples continues to outperform General Merchandise and Apparel. Lower consumer spending in General Merchandise and Apparel continues and has impacted the margin mix downwards.

Two years and older DMart stores grew by 24.2% during FY 2023 as compared to FY 2022. These same stores grew at 11.0% in the second half of FY 2023 vis-a-vis the second half of FY 2022. We have 234 stores that are 2 years or older. We continued to expand our store footprint and opened 40 new stores during the year taking our cumulative total to 324 stores.

Our E-Commerce business continued its expansion in our existing 22 cities. We cumulatively expanded our operations in 10 new cities during FY 2023.

We have commenced operations of our pharmacy shop-in-shop through one of our subsidiaries (Reflect Healthcare and Retail Private Limited) during the quarter through the launch of our first outlet in the Mumbai Metropolitan Region.”

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