Avenue Supermarts, which owns and operates D-Mart supermarket chain, on Saturday reported a 42 per cent year-on-year (Y-o-Y) growth in consolidated net profit to Rs. 271.29 crore crore for the March quarter. The company’s net profit for the same quarter last year stood at Rs. 191.58 crore.
In December quarter, the company posted a net profit of Rs. 382.60 crore.
Profit after Tax (PAT) margin improved to 4.3 per cent in Q4 FY20 from 3.8 per cent in Q4 FY19.
Revenue from operations for the January-March quarter stood at Rs. 6,255.93 crore, a 24 per cent jump from Rs. 5,061.65 crore posted in the year-ago quarter.
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) in the fourth quarter of FY20 stood at Rs. 417 crore, as compared to Rs. 372 crore in the corresponding quarter of last year.
EBITDA margin is at 6.7% in Q4 FY20 as compared to 7.4% in Q4 FY19.
Total Revenue for FY20 stood at Rs. 24,870 crore (Rs. 20,005 crore) while net profit for the full year ended March 2020 stood at Rs. 1,301 crore (Rs. 902 crore).
“Overall, FY 2020 saw a healthy 24% revenue growth while PAT margins were in line with expectations,” Neville Noronha, CEO & Managing Director, Avenue Supermarts Limited said in a press statement.
On the operational impact of Covid-19, the company said, “The countrywide lockdown began towards the latter half of March 2020 during which most of our stores remained closed for operations and stores that were opened, operated for restricted hours as directed by local authorities.”
The company also said, while its overall revenue grew by 23 per cent during the quarter ending March 2020, revenue in March grew by just 11 per cent as compared to March 2019 due to the lockdown effect of the last 9 days of March this year.
“The trend rapidly deteriorated in April during which more than half of our stores remained closed for operations or operated for extremely restricted hours. Our revenue for April was down by more than 45% as compared to April 2019,” it added.
Avenue Supermarts also said that the challenges are likely to continue in the current financial year as the economy gradually opens after the lockdown.
“Inventory write-offs due to shelf life aging and obsolescence doesn’t seem to be a significant issue of worry yet, however it could become a meaningful problem if the lock down measures continue to be as stringent as before and for a further period exceeding 40-50 days from now,” it added.
The company also said its new store openings will be impacted as construction activity will commence with some lag due to availability of labour & material and the onset of monsoon from mid-June onwards in most parts of the country.
Avenue Supermarts added 38 new stores during FY20.
“The full extent to which the pandemic will impact our future financial results will depend upon upcoming developments, which are highly uncertain including any new information concerning the severity of the pandemic and the action to mitigate its spread as advised by local authorities,” the company added.