Avenue Supermarts Q1 Review - Lower Operational Days, Restricted Timings Hit Sales: Systematix

Customers wait outside a DMart supermarket in Mumbai. (Photographer: Vivek Amare/BloombergQuint)  

Avenue Supermarts Q1 Review - Lower Operational Days, Restricted Timings Hit Sales: Systematix

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Systematix Research Report

Avenue Supermarts Ltd.'s Q1 FY22 revenue grew 31% YoY to Rs 50 billion on a weak base (34% decline in Q1 FY21).

Sales plummeted on account of lower operational days and restricted store timings due to lockdown restrictions.

Gross margin contracted 129 basis points YoY to 12.4% on a weak product mix (lower share of apparel and general merchandise).

Ebitda margin expanded 156 basis points YoY to 4.4% (estimate of 5.4%).

The company opened four new stores during Q1 FY22, taking the total to 238 stores covering an area of nine million square feet.

DMart Ready maintained an impressive sales growth driven by online shopping during the second wave of the pandemic.

Click on the attachment to read the full report:

Systematix Avenue Supermarts - Q1FY22 - Results Upadate.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.