Avenue Supermarts Ltd, which owns and operates D-Mart stores, reported a 25 per cent year-on-year (y-o-y) increase in third quarter standalone net profit at ₹586 crore as compared to ₹470 crore in the corresponding quarter of FY21.
Revenue from operations rose 22 per cent y-o-y to ₹9,065 crore in the reporting quarter against ₹7,433 crore in the year ago quarter.
Expenses on account of purchases of stock-in trade was up 19 per cent y-o-y to ₹7,546 crore against ₹6,316 crore in the year ago quarter.
Neville Noronha, CEO & Managing Director, Avenue Supermarts Ltd, said: “Revenue in the D-Mart stores grew by 22 per cent in this quarter over the corresponding quarter of last year. Overall gross margins are marginally lower due to mix deterioration. General merchandise and apparel business is consistently seeing relatively lesser sales contribution while essentials and FMCG is doing better.”
He observed that inflation and lesser opportunities to go out are negatively impacting certain categories more than others.
“We are seeing higher inflation as an opportunity to make our buying more efficient, our assortment sharper and continue to keep our costs low. Considering the current Covid wave, our sales and footfalls will be dependent on local regulations. We continue to take all precautions to ensure every shopper, employee and partner is operating in a safe environment,” Noronha said.
As of December 31, 2021, the Company had 263 operating stores with retail business area of 10.3 million sq ft across Maharashtra, Gujarat, Daman, Andhra Pradesh, Karnataka, Telangana, Tamil Nadu, Madhya Pradesh, Rajasthan, NCR, Chhattisgarh and Punjab.