Avenue Supermarts Q1 net profit down 88 percent to Rs 40 crore

By

Maverick Martins

Published
Jul 15, 2020

Avenue Supermarts Ltd, which owns and operates D-Mart stores across the country, saw its consolidated net profit for the June quarter decline 88 percent to Rs 40 crore ($5.33 million), as against Rs 323 crore it reported in the year-ago period.
 

The company’s revenue for the quarter declined 33 percent to Rs 3,883 crore, from Rs 5,815 crore in the year-ago quarter.
 
Commenting on the results, Avenue Supermarts CEO and managing director, Neville Noronha, in a statement said: “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.

“Wherever stores were allowed to operate unhindered it saw recovery at 80 percent or more of pre-Covid-19 sales. But discretionary consumption continues to be under pressure, especially in the non-FMCG categories. This is impacting the gross margins negatively. In addition, in certain cities, authorities are once again insisting on selling only essential products. Hence our future revenues continue to remain uncertain,” he added.
 
The Mumbai-based Avenue Supermarts currently operates around 216 stores across India through its D-Mart stores.