Avenue Supermarts declared its fourth quarter results on Saturday, May 13. The consolidated revenue from operations are higher by 21 percent to Rs 10,594 crore, while earnings before interest, tax, depreciation and amortization grew meagre 4 percent year on year to Rs 772 crore. Operating margins have slipped 110 bps to 7.3 percent versus 8.4 percent in same quarter of last year. Consolidated net profit is 8 percent higher in this quarter and stood at Rs 460 crore.

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DMart added 18 stores in the fourth quarter and the total number of stores as on March 31, 2023 are at 324. The total store additions for financial year 2022-23 is 40.

The retailer's full year 2022-23 results shows 38 percent jump in revenues and strong 46 percent jump in earning before interest, tax, depreciation and amortization. Operating margins improved to 8.5 percent versus 8.1 percent in financial year 2021-22, while net profits are higher 59 percent.

Peer Reliance Retail has lately been focusing on aggressive growth in the unorganized Indian retail industry. The share of modern retail, including E-Commerce has been steadily rising in the country. In the fourth quarter, Reliance Retail continued to gain market share driven by rapid stores expansion, with grocery revenue up 66 percent year on year versus Dmart up 20 percent.

The sales per sq. ft of DMart is about 4 percent lower than the pre-pandemic levels, while the apparel segment of the company is still witnessing softness.

Avenue Supermarts stock is down 10 percent on a year to date basis and rose marginally by 3 percent in the last one year.