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??
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)