Avenue Supermarts reports 43.4% increase in net profit at Rs 251 crore.

DMart showing momentum in Q1FY19.


Avenue supermarts which operates retail chain DMart, on Monday reported 43.4% YoY rise in net profit to Rs. 251 crore in Q1FY19.The company reported results above estimates. Avenues Ltd. Q1FY19 Revenue grew by 27% YoY from Rs.3598.12 cr in Q1FY18  to Rs.4559.42 cr in Q1FY19. EBITDA came in at Rs. 423 cr 39.4% YoY and 43.4% QoQ. PAT trends to 43% YoY basis and 50% QoQ. EBITDA and PAT margins showed 9% and 5% growth respectively in this quarter.

Key Investment Highlights.

  • Improved profit after tax for the quarter is due to better operational performance and lower impact of interest cost as compared to last year June quarter.
  • Q1 PAT tends to be better than full-year results.
  • This quarter has seen slightly lower gross margins, which is a result of our conscious effort to maintain or bring down prices for consumers across categories.

  • Key to this strategy is the attention to keeping costs under control and offering a no frills value proposition to the Indian customer.

How it fairs among its peers??

chart

Its Impact?

Avenue Supermarts Ltd.(CMP:Rs.1647, Market Cap: Rs. 1,02,808 cr, FY19 PB: 16.4x)

Future Retail Ltd.(CMP: Rs.530 , Market Cap: Rs.26,632 cr, FY19 PB:6.43x)

Aditya Birla Fashion and Retail (CMP: RS.143, Market cap: Rs.11,054 cr , FY19 PB: 8.61x)

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