Avenue Supermarts Ltd, which owns and operates the retail chain D-Mart, on Saturday reported a 6.71 per cent increase in its consolidated net profit to Rs 589.64 crore for the third quarter ended on December 31, 2022.
The company had posted a net profit of Rs 552.53 crore in the October-December quarter a year ago, said Avenue Supermarts in an exchange filing.
When compared to the equivalent quarter of the previous fiscal, its operating revenue increased by 25.50% to Rs 11,569.05 crore during the period under review.
The overall expenses for Avenue Supermarts were Rs 10,788.86 crore, up 27.02 percent from Rs 8,493.55 crore in the third quarter of the previous fiscal.
Commenting on the performance of DMart’s brick & mortar business, Avenue Supermarts CEO & Managing Director Neville Noronha said, “FMCG and staples segment continued to outperform the general merchandise and apparel segments. Gross margin percentage decline over the corresponding quarter of last year is a reflection of this mix change.”
Additionally, he noted that this quarter’s non-FMCG discretionary sales did not perform as well as anticipated.
Avenue Supermarts extended the activities of DMart Ready, its e-commerce business arm, throughout the quarter.
“We have further expanded our E-Commerce operations to four new cities while continuing to deepen our presence in the existing 18 cities. Our operations now span across 22 cities in India,” he said.
Besides, D-MART is also in the process of commencing a pharmacy shop-in-shop through its subsidiary Reflect Healthcare and Retail Pvt Ltd at one of its stores.
“This is yet another pilot that will complement our brick-and-mortar business using our existing store infrastructure,” Noronha said.
In the states of Maharashtra, Gujarat, Daman, Andhra Pradesh, Karnataka, Telangana, Tamil Nadu, Madhya Pradesh, Rajasthan, NCR, Chhattisgarh, and Punjab as of December 31, 2022, D-Mart operated 306 outlets.
With inputs from Agencies.