Continued growth for one of India’s largest supermarket operators.
Total revenue increases by 33.2% vs. previous year
Avenue Supermarts Limited, who operates the DMart supermarket chain, reported a strong performance for the quarter ended 31 December 2018. The company’s financial year begins in April and this period is its third quarter.
Sales revenue for the retailer during this quarter was INR 5451 crores (US$770.1m) versus sales of INR 4094 crores (US$578.4m) during the same quarter last year. The company also reported net profit after tax of INR 257.11 crores (US$36.3m), a growth of 2.1% compared to last year.
Price promotions during the festive period affected margins
Though strong top line growth was reported, the retailer attributed the slowdown in its net profits to increased costs. Avenue Supermarts Limited saw its operating expenses grow due to extended opening hours during the festive Diwali period as well as reduced gross margins through price promotions.
The retailer also reported that it has opened four new stores and now operates 164 stores with a total business area of 5.3 million sq ft.
Find out more information about DMart here.
Retail Analysis Asia