- In the quarter ended September 2019, Avenue Supermarts, DMart supermarket chain owner, reported a 47.54 percent year-on-year increase in net income at Rs 322.66 crore on Saturday.
- At Tuesday’s price, DMart market capitalization is Rs. 1.18 lakh crore while Titan Industries is valued at Rs. 1.14 lakh crore. The earnings growth of DMart is directly linked to store additions, something which the company can now do given the position they are in.
In the quarter ended September 2019, Avenue Supermarts, DMart supermarket chain owner, reported a 47.54 percent year-on-year increase in net income at Rs 322.66 crore on Saturday. In the corresponding period last year, the company posted a net profit of Rs 218.69 crore.
Commenting on the company’s financial results, Neville Noronha, CEO & Managing Director, Avenue Supermarts said, “The quarter’s revenue growth was slightly lower than our expectations, while the gross margin improved over the corresponding period last year due to a better revenue mix. The increase of the PAT margin is aligned with revenue growth and is also accompanied by the reduction of corporate tax rates.
The company’s consolidated total income increased 22.26 percent from Rs 4,906.54 crore in the same period last year to Rs 5,998.90 crore during the quarter under review. In Q2FY20, earnings per share (EPS) jumped from Rs 3.62 in Q2FY19 to Rs 5.34. The company’s share price closed Friday at Rs 1843.25 by 1.23 percent. In the quarter of September, Avenue Supermarts opened 5 stores.
The shares of Avenue Supermart have risen up 17 percent, the highest among consumer and retail stocks, since the announcement of a cut in corporate tax rates by finance minister Nirmala Sitharaman and have a hit record. The company overtook Titan Industries in terms of market capitalization. At Tuesday’s price, DMart market capitalization is Rs. 1.18 lakh crore while Titan Industries is valued at Rs. 1.14 lakh crore. The earnings growth of DMart is directly linked to store additions, something which the company can now do given the position they are in. The low tax will leave more cash in the hands of the retailer and will reduce the payback period for its investments.
From the launch of its first store in Powai in 2002, D-Mart today has a well-established presence in 176 locations across Maharashtra, Gujarat, Andhra Pradesh, Madhya Pradesh, Karnataka, Telangana, Chhattisgarh, NCR, Tamil Nadu, Punjab, and Rajasthan. At the time of its IPO last year, the company was valued at Rs 40,000 crore and the projected growth rate was 40 percent.
The supermarket chain of D-Mart stores is owned and operated by Avenue Supermarts Ltd. (ASL). The brands D Mart, D Mart Minimax, D Mart Premia, D Homes, Dutch Harbour, etc are brands owned by ASL D-Mart is widely known to be a one-stop shopping destination to meet all the household needs of a family.
It offers a wide variety of products including – home utility products, foods, toiletries, beauty products, garments, kitchenware, bed and bath linen, home appliances, Toys & Games, Stationery, Footwear, and a lot more.
