January 8, 2022
admin
Avenue Supermarts Ltd, which owns and operates retail chain DMart , has reported a standalone revenue of Rs9,065 crore for the quarter ending December, 2021 (Q3FY22). 
Avenue Supermarts clocked double-digit growth in earnings for the quarter though the overall gross margins were marginally lower due to mix deterioration.
The standalone profit for Q3FY22 grew 24.57 percent year-on-year to Rs 585.79 crore, and revenue from operations stood at Rs 9,065 crore, up 22 percent from Rs 7,432.7 crore a year ago
At the operating level, the company showed a strong 25.6 percent year-on-year growth in EBITDA at Rs 868 crore in the December 2021 quarter and reported an EBITDA margin at 9.6 percent for the quarter, up 30 bps compared to 9.3 percent in year-ago period.
During the nine months to December 2021, the profit grew 57.4 percent to Rs 1,150 crore and revenue increased 31.9 percent to Rs 21,746 crore, compared to corresponding period last year.
Avenue Supermarts has added 17 stores during Q3FY22, and there was 29 stores addition in April-December period of 2021. The total number of stores as of December 31, 2021 stood at 263.
On Friday, DMart shares closed 0.55% to close at Rs 4731 on NSE. The shares have gained over 60% in 2021. The stupendous rally in the stock has meant that, the investor-promoter of DMart, Radhakishan S Damani has broken into the elite club of the top 100 global billionaires in 2021.
Damani, who grew up in a single-room apartment in Mumbai, is now ranked 63rd on the Bloomberg Billionaires Index with $24.6 billion as his net worth.
Editorial Comment : The scrip is showing consolidation and sideway trend since last few weeks. However with the annoucement of strong Q3 results, the scrip on Monday is expected to show strong spurt. At the current price, the scrip at PE Multiple of 223 and Price to Book Value of 25.15 is very costly and at such high valuations , fresh investments may not offer adequate yield. You
