India's DMart posts Q4 profit rise on strong demand.

Avenue Supermarts

04/05/2024 13:42

NEW DELHI, May 4 (Reuters) - India's Avenue Supermarts
 AVEU.NS , which operates the DMart chain of retail stores,
reported a 22.4% rise in fourth-quarter profit on Saturday
helped by rising footfall in its stores that sell groceries and
apparel below the maximum retail price.
    The retailer, known for discounts on everything from food to
clothes, reported a consolidated net profit of 5.63 billion
rupees ($67.5 million) for the quarter ended March 31, up from
4.60 billion rupees a year ago.
    Consolidated sales increased 20% in the fourth quarter,
compared with 17.3% in the prior quarter, helping to boost the
retailer's bottom line.
    Its provision of products at affordable prices has attracted
inflation-weary consumers.
    The Mumbai-based company's earnings before interest, taxes,
depreciation and amortization (EBITDA) margin rose to 7.4% in
the quarter from 7.3% in the year-ago period.
    DMart's consolidated revenue rose to 127.27 billion rupees
from 105.94 billion rupees in the year-ago quarter.
    During the fourth quarter, DMart opened 24 stores across the
country, and had a total of 365 stores as of March 31.    
    Shares of Avenue Supermarts rose about 11% during the March
quarter; it closed 0.2% higher on Friday.

 (Reporting by Arpan  Chaturvedi; editing by Giles Elgood)
 ((Arpan.Chaturvedi@thomsonreuters.com;))