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Last Updated : Jul 11, 2020 06:27 PM IST | Source: Moneycontrol.com

COVID-19 impact: D-Mart operator's Q1 profit plunges 88% to Rs 40 crore

Avenue Supermarkets says its basic earnings per share for Q1 FY21 stand at Rs 0.62 as compared to Rs 5.18 for Q1 FY20.

 
 
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Avenue Supermarts, which operates the hypermarket chain D-Mart, has reported 87.6 percent fall in June quarter earnings due to the nationwide lockdown to control the spread of COVID-19.

The profit in June quarter 2020 came in at Rs 40.09 crore, a significant drop compared to Rs 323.09 crore reported in the corresponding period last fiscal.

Revenue from operations fell 33.2 percent year-on-year to Rs 3,883.2 crore in the quarter ended June 2020.

"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," Neville Noronha, CEO and Managing Director of the company, said.

Avenue said its basic earnings per share (EPS) for Q1 FY21 stood at Rs 0.62 as compared to Rs 5.18 for Q1 FY20.

At the operating level, earnings before interest, tax, depreciation and amortisation (EBITDA) plunged 81.2 percent YoY to Rs 112 crore and margin dropped significantly by 740 bps to 2.9 percent in June quarter 2020.

The D-Mart operator in its BSE filing said wherever stores were allowed to operate unhindered, the company recovered 80 percent or more of pre-COVID sales in most stores. "Discretionary consumption continued to be under pressure, especially in the non-FMCG categories. This is impacting gross margins negatively," it noted.

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Future revenues continued to remain uncertain, the company said. "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," it added.
First Published on Jul 11, 2020 06:27 pm
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