Avenue Supermarts Q2 Results: Profit rises 63% YoY to Rs 730 crore; revenue jumps 36% – Blue Barrows

on Saturday reported a nearly 63 per cent YoY rise in net profit for the September quarter to Rs. 730.48 crores. Revenue for the quarter rose nearly 36 per cent on year to Rs. 10385 crores.

The earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter rose more than 33 per cent on year to Rs. 895 crores. However, operating margin dipped by 14 basis points to 8.62 per cent.

The fast moving consumer goods (FMCG) and staples segment of the business performed better than general merchandise and apparel segments, the company said in a release.

While the discretionary portfolio in the non-FMCG segment is seeing recovery, it is still not reached pre-pandemic levels, it said. “The inflationary stress is more acute at lower price points in discretionary non-FMCG categories,” Neville Noronha, CEO and MD was quoted as saying in the release.

While the average basket values remained higher, footfalls continued to be lower than pre-pandemic levels, Noronha said. On a like-to-like basis, stores that are 5 years and older, have seen about 21 per cent absolute growth in Q2 when compared to the same period in 2019. “…we are seeing lesser like-for-like growth in older stores which have significantly higher turnover per square feet than the company average,” Noronha said.