avenue supermarts shares: Avenue Supermarts Q3 revenue rises 25% YoY, but pace of growth slows down

The company, which operates D-Mart chain of supermarkets, saw revenue rising 25% year on year (YoY) in the period of October-December to Rs 11,305 crore, according to the provisional figures shared by the retailer.

In the September quarter, the company’s revenue grew 36% on-year to Rs 10,385 crore. The growth in the topline in the December quarter is the lowest since the March quarter of FY22.

As of December 31, the total number of stores stood at 306, compared with 302 a quarter ago.

In the last quarter, the company had said sales of discretionary items in the non-FMCG segment were recovering, but are yet to match pre-pandemic levels.

Investors would want to see if there was a further improvement in sales in the December quarter.

Footfalls to the stores were also low and Avenue attributed that to some negative impact on the more profitable non-FMCG categories. Given that the last quarter coincided with the festive season, footfalls should have improved.
The Street will watch out the commentary on this front, when the company announces its earnings. Avenue Supermarts is yet to disclose the date for announcing the quarterly results.

Shares of Avenue Supermarts have lagged benchmark indices in the last quarter. While the stock fell by over 7% in Q3, the Nifty 50 has gained 6% in the same period.

The good numbers for Q3 should help the stock gain in trade on Wednesday. On Tuesday, the stock ended 0.3% down at Rs 4,060.90 on the National Stock Exchange.

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