DMart has shown a record number of positive earnings in the 2022 June quarter-end
DMart or Avenue Supermart has recorded a strong earning for the 2022 June quarter-end (Q1FY23). DMart has achieved a standalone net profit of INR 679.64 crore only in Q1FY23 which depicts a rise of 490.32% which is almost 5,90 times compared to the same quarter in the previous year. The After-Tax Profit Margin or PAT margin also elevated to 6.9% in Q1FY23 which was almost 2.3% in Q1FY22.
They are also able to achieve a standalone revenue of INR 9806.89 crore which shows a steep rise of 94.90% from INR 5,031.75 crore of the previous year in the same quarter. DMart’s revenue reached an optimum of 13.95% from INR 8,606.09 crore in Q4FY22.
According to CEO and Managing Director Neville Noronha of DMart, “We ended Q1 FY 2023 with growth across all key financial parameters. There has been a very good recovery in overall sales. 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. These are stores that are larger, better designed, and have the capacity to handle the larger scale of revenue.”
He further said, “These stores have done extremely well in this quarter. This is also the first full quarter of zero disruption from the 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.”
Reportedly the merchandise company has shown relatively better improvements than the previous quarter which was heavily affected by the COVID-19-led global pandemic. Mr. Noronha also said in response to the two-year-long pandemic the possible high inflation has reduced the volume growth due to less mass consumption. However, DMart has been able to enrich at the positive volume growth which is proportional to the company’s value growth in recent times.
