NEW DELHI: Avenue Supermarts Ltd, which owns and operates the retail chain D-Mart, on Saturday reported a 9.09% decline in consolidated net profit at Rs 623.35 crore for the second quarter ending September 30. Profit fell as contributions from general merchandise and apparel business impacted gross margins.
It had reported a net profit of Rs 685.71 crore in the Q2 quarter in the previous financial year, said Avenue Supermarts in a regulatory filing. However, its revenue from operations rose 18.66% to Rs 12,624.37 crore during the quarter under review, as against Rs 10,638.33 crore in the corresponding quarter last financial year.
Total expenses in Q2FY24 were at Rs 11,809.35 crore, up 18.97%. The total income of Avenue Supermarts in the quarter was at Rs 12,661.29 crore, a rise of 18.61%. For the first half of this financial year, its revenue from operations was at Rs 24,489.81 crore and its net profit was at Rs 1,282.06 crore.
“Profit-after-tax (PAT) margin stood at 5.2% in the first half (H1) of FY24, as against 6.4% in H1FY23,” it said. Avenue Supermarts CEO & MD Neville Noronha said: “Q2 FY2024 saw revenue growth of 18.5% as against the corresponding quarter of last year.” “Our gross margins continue to be lower compared to the same period in the previous year, due to lesser contribution from higher margin general merchandise and apparel business.”
During the June quarter, D-Mart opened nine new stores taking the total count to 336. D-Mart operates across Maharashtra, Gujarat, Daman, Andhra Pradesh, Karnataka, Telangana, Tamil Nadu, Madhya Pradesh, Rajasthan, NCR, Chhattisgarh and Punjab.