Avenue Supermarts reported an 87.61 per cent year-on-year decline in its consolidated net profit for the first quarter of the current fiscal. For the quarter ended June 30, 2020, the Radhakishan Damani-led retailer posted a profit of Rs 40.09 crore, as compared to Rs 323.09 crore in the corresponding quarter last year.

PAT margin of the company for the quarter under review fell 450bps to 1 per, as compared to 5.5 per cent recorded in June quarter last year. Total revenue for Q1 FY20 stood at Rs. 3,883 crore, as compared to Rs 5,815 crore in the same period last year. Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) in Q1 FY21 stood at Rs 112 crore, as compared to Rs. 597 crore in the corresponding quarter of last year. EBITDA margin stood at 2.9 per cent in Q1 FY21 as compared to 10.3 per cent in Q1 FY 20.

Basic Earnings per share (EPS) for Q1 FY21 stood at Rs. 0.62, as compared to Rs 5.18 for Q1 FY20, the company said in a regulatory filing.

"COVID-19 continued to spread across the country. The ensuing restrictions have had a significant impact on our operational and financial performance in the quarter. Our revenue, EBIDTA and PAT for the quarter were significantly lower as compared to the same quarter last year," said Neville Noronha, CEO & Managing Director of Avenue Supermarts.

Avenue Supermarts said that wherever stores were allowed to operate unhindered saw recoveries up to 80 per cent or more of pre-COVID sales. The company stated that discretionary consumption continues to be under pressure, especially in the non-FMCG categories, which is impacting gross margins negatively.

"Store operations and duration of operation per day continue to remain inconsistent across cities due to strict lockdowns enforced by local authorities from time to time. In addition, in certain cities authorities are once again insisting on selling only essential products. Hence our future revenues continue to remain uncertain," the company said in its statement.

We continue to cooperate with local authorities and are taking all necessary precautions and measures to keep our shoppers and employees safe and make shopping 100 per cent safe, Avenue Supermarts said.

Unlike developed countries where organised retailers had a surge of customers walking into their stores, it has not happened with the same intensity at our stores, Avenue Supermarts said.

"This was because of the strong enforcement of store shutdowns, restrictive movement of people in general and strict social distancing rules inside stores. While the overall lockdown rules have softened in general, they continue with the same or more severe intensity in certain cities and local municipalities from time to time. Its negative impact on footfalls and sales were significant," the company further added.