Total Revenue up by 22.6% at Rs.4,095 Crore, PAT up by65.8% at Rs.252 Crore
Avenue Supermarts Ltd. (ASL), declared its financial results for the quarter and nine months ended December31, 2017.
Total Revenue for the quarter ended December 31, 2017 stood at Rs. 4,095 crore, as compared to Rs. 3,339 crore in the same period last year. ASL’s Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) in Q3FY18 stood at Rs. 422 crore, as compare to Rs. 288 crore in the corresponding quarter of last year. The company’s EBITDA margin improved from 8.6% in Q3FY17 to 10.3% in Q3FY18.
The Company reported Net Profit of Rs. 252crore for Q3FY18, as compared to Rs. 152crore in the corresponding quarter of last year. The company’s PAT margin improved from 4.5% in Q3FY17 to 6.1% in Q3FY18.
Basic Earnings per share (EPS) for Q3FY18 stood at Rs. 4.03, as compared with Rs. 2.70for Q3FY17.
Total Revenue for nine months ended December 31, 2017 stood at Rs. 11,201 crore, as compared to Rs. 8,770 crore in the same period last year. ASL’s EBITDA in 9MFY18 stood at Rs. 1,043 crore, as compared to Rs. 756 crore during 9MFY17. The company’s EBITDA margin improved from 8.6% in 9MFY17 to 9.3% in 9MFY18.
For nine months ended December 31, 2017 ASL’s net profit grew by 60% to Rs. 618crore, as compared to Rs. 386crorefor the same period last year. The company’s PAT margin improved from 4.4% in 9MFY17 to 5.5% in 9MFY18.
For 9MFY18, Basic EPS stood at Rs. 9.90as against Rs. 6.87in 9MFY17.
The Board has approved in its meeting held today the acquisition of 50.79%paid-up share capital of Avenue E-Commerce Limited, an associate company of Avenue Supermarts Limited. Post completion of this acquisition, Avenue E-Commerce Limited shall become a wholly owned subsidiary of Avenue Supermarts Limited.
D-Mart follows Everyday low cost – Everyday low price (EDLC-EDLP) strategy which aims at procuring goods at competitive price, using operational and distribution efficiency and thereby delivering value for money to customers by selling at competitive prices.
Commenting on the financial performance of the company Mr. Neville Noronha, CEO & Managing Director, Avenue Supermarts Limited, said, “Gross Margin increase is due to improvement in sales mix and efficiency of centralised procurement. Growth in this quarter appears to be lower as compared to previous year quarter because of demonetisation base effect. Growth in December 16 quarter was significantly higher than the growth of FY 16-17. Speed of opening new stores has to improve. There is an opportunity to do better there.”