In a business update, DMart earlier this week said its standalone revenues jumped nearly two-fold to Rs 9,806.89 crore in the June quarter from Rs 5,031.75 crore in the year-ago quarter. Analysts were already expecting a multifold rise in the retailer’s profit on a low base.
Ebitda margin for the quarter came at 10.3 per cent compared with 4.4 per cent in the year-ago quarter. The standalone PAT margin stood at 6.9 per cent in Q1FY23 as compared with 2.3 per cent in Q1FY22.
CEO & Managing Director Neville Noronha said His company ended the quarter with growth across all key financial parameters. There has been a very good recovery of overall sales, he said.
“However, this quarter’s performance is not comparable to the same period last year due to the second wave of Covid-19 during that time. We cumulatively opened 110 stores over the last 3 financial years, which never got an opportunity to operate in normal circumstances over the last 2 years, he said.
These are stores that are larger, better designed and have capacity to handle larger scale of revenue the company sais. These stores have done extremely well in this quarter, it said.
“This is also the first full quarter of zero disruption from Covid-19 pandemic. Q1 like Q3 is a good revenue as well as profit enhancing period due to back to school, college season and the onset of the monsoons,” the company said.
The company said its general merchandise and apparel categories saw relatively better traction than the previous quarter but still has some overhang of the Covid-19 led disruptions and acute inflationary impact. Our discretionary contribution mix of this quarter is yet to reach the pre-pandemic levels but is getting better.
Overall, consolidated net profit jumped multifold to Rs 643 crore compared with Rs 95 crore YoY. Consolidated revenues jumped two-folds to Rs 10,038 crore, as compared to Rs.5,183 crore in the same period last year.
On DMart Ready, the company said it continues to deepen its presence across 12 cities in India. “We are doing more of the same and
continue to focus on the larger cities. Smaller towns are pilots and we are constantly learning from the feedback we get from our customers in these towns.”
