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Avenue Supermarts Q3 Review - Strong Store Addition To Support Revenue Growth: ICICI Direct

Avenue Supermarts Q3 Review - Strong Store Addition To Support Revenue Growth: ICICI Direct

<div class="paragraphs"><p>D-Mart store exterior. (Source: BloombergQuint)</p></div>
D-Mart store exterior. (Source: BloombergQuint)

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ICICI Direct Report

Avenue Supermarts Ltd. Q3 FY22 results were a mixed bag as margins were tad below estimates. The company reported 22% YoY revenue growth to Rs 9217.8 crore (two year compound annual growth rate: 16%).

Gross margins declined marginally to 15.4% on account of unfavorable product mix. However, owing to positive operating leverage, Ebitda margins improved 30 basis points YoY to 9.4%.

D-Mart's profit after tax for the quarter grew 24% YoY to Rs 552.0 crore (two-year CAGR: 20%). Store addition trajectory accelerated materially in Q3 FY22 as it added 17 new stores taking total store count to 263 spread across 10.3 million square feet.

Click on the attachment to read the full report:

ICICI Direct Avenue Supermarts Q3FY22 Result Update.pdf

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