The Economic Times
English EditionEnglish Editionहिन्दीગુજરાતી
| E-Paper
Search
+

    DMart Q1 results: Profit tumbles 88% to Rs 40 crore; margins drop 450 bps to 1%

    Synopsis

    Its consolidated total revenues fell 33.22 per cent YoY to Rs 3,883 crore in June quarter.

    Agencies
    The company said that wherever stores were allowed to operate unhindered saw recovery at 80 per cent or more of pre-Covid sales.

    Related Companies

    NSE
    BSE

    PEER COMPANIES

    NEW DELHI: Avenue Supermarts (DMart) on Saturday reported an 87.61 per cent year-on-year (YoY) plunge in consolidated net profit at Rs 40 crore for the June quarter. The Radhakishan Damani-led company had reported a profit of Rs 323 crore in the same quarter last year.

    The chain of hypermarkets said its consolidated total revenues fell 33.22 per cent YoY to Rs 3,883 crore in June quarter from Rs 5,815 crore in the year-ago quarter. Profit margin contracted 450 basis points YoY to 1 per cent for the quarter from 5.5 per cent in the corresponding quarter of last year.

    "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, Ebitda and profit for the quarter were significantly lower as compared to the same quarter last year," said Chief Executive & MD Neville Noronha.

    The company said that wherever stores were allowed to operate unhindered saw recovery at 80 per cent or more of pre-Covid sales.

    Discretionary consumption continues to be under pressure, especially in the non-FMCG categories, DMart said.

    "This is impacting the gross margins negatively. Store operations and duration of operation per day continues 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. Hence our future revenues continue to remain uncertain," DMart said.

    The company said it was cooperating with local authorities and is taking all necessary precautions and measures to keep shoppers and employees safe.

    DMart said that unlike developed countries where organized retailers had a surge of customers walking into their stores, it has not happened with the same intensity at its stores.

    "We are less anxious than we were in the beginning of April," the company said on its business model update.


    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds.)

    Also Read

    19 Comments on this Story

    Jagdish28 days ago
    Agree to Mr Santos findings.This is operators stock & now retailers are left high & dry.
    Santos33 days ago
    This is a special operators stock. It has been milked enough. So now operators will dump it and leave gullible, starry eyed investors high and dry.The way things are unfolding, the whole of 2020 will be a washout.Stock will retrace at least 33% of its rise.
    Hemant Pisat33 days ago
    That's really surprising. News reports were about Damani's Avenue Supermarkets (D'mart) is doing fantastic business in the worst pandemic situations & now the reports of tepid profits looks unreal.
    The Economic Times