Avenue Supermarts Ltd, which owns and operates the retail chain D-Mart, reported on Saturday an increase of 3.11 percent of its consolidated net profit to Rs 426.75 million for the fourth quarter ended March 2022.
The company had reported a net profit of Rs 413.87 crore during the January-March quarter a year ago, Avenue Supermarts said in a BSE report.
Its operating income increased by 18.55 percent to Rs 8,786.45 during the period under review from Rs Rs 7,411.68 during the corresponding quarter in the previous financial year.
Avenue Supermart’s total expenses increased by 18.71 percent to Rs 8,210.13 crs during Q4 FY2021-22 against Rs Rs 6,916.24 a year ago.
For the fiscal year ended March 2022, Avenue Supermart’s consolidated net profit grew by 35.74 percent to Rs 1,492.40 million. It had reported a net profit of Rs 1,099.43 crore during the previous financial year.
During 2021-22, revenues from operations increased by 28.3 percent to Rs 30,976.27 million. It was Rs 24,143.06 million during FY21.
Avenue Supermart CEO and CEO Neville Noronha said: “The month of March 2022 once again had a robust recovery and very satisfactory growth compared to March 2021. Overall, the quarter’s results and the last two waves of stop-start-stop give us extreme confidence in the business’ resilience to recover in the short term ”.
D-March’s FMCG operations are recovering well, he added.
“The value proposition is clearly seen by our customers in this segment. In the discretionary non-FMCG segment, it is currently difficult to estimate whether the relatively lower growth is due to a secular change over time due to the e-commerce shift or inflation or due to significantly higher Covid-related negative economic effects for some shoppers, ”said Noronha.
Speaking about DMart’s growth in the brick and mortar segment for FY22, he said that the company ended the year with growth across key financial parameters such as Revenue, EBITDA and PAT.
“Two years and older, DMart stores grew by 16.7 percent during FY2022 compared to FY 2021. We have 214 stores that are 2 years or older. Our sales from General Merchandise and Apparel rose slightly to 23.40 percent compared to 22, 90 percent last year, ”he added.
During FY22, D-Mart opened another 50 stores, bringing the total number to 284 stores.
“Our store footprint continues to grow across the country. We had a record opening this year, mainly due to delayed openings last year due to Covid,” he says.
Its e-commerce business DMart Ready also had a gradual expansion during the year, located in 12 cities across the country.
“After the Omicron wave, e-commerce has slowed its growth path. But overall, we are quite happy and excited about this business. We learn every day. DMart Ready has once again had a fantastic year. Sales this year were more than double. as big as last year, says Noronha.
At a basic level, D-Mart believes that for groceries, e-commerce is a channel for convenience while bricks and mortar are still the channel of joy, in addition to the effort to reach the store and the time to wait at the checkout.
“Everyone has their own unique magic. We will operate both channels to the best of our ability with a mindset to improve these principles and ensure that the value to the shopper remains superior,” he said.