DMart Share Price Tumbled Over 5% After Lacklustre Q3 Results: Key Takeaways

After touching a low of Rs 3645.20 during early trade, shares of DMart ended 4.75 per cent down on the NSE at Rs 3680.25 as against Rs 3863.70 on Friday

Written by: India.com Business Desk

Published: January 16, 2023, 5:14 PM IST

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https://www.india.com/business/dmart-share-price-tumbled-over-5-after-lacklustre-q3-results-key-takeaways-5855961/ Copy

Avenue Supermarts (Dmart):

New Delhi: Ace investor Radhakishan Damani-owned Avenue Supermarts Limited on Saturday reported a consolidated net of Rs 590 crore, a 6.7 per cent year-on-year rise, for the quarter ended December 2022. The final profit on the sheet was way below the estimated figure of Rs 672 crore.

KEY TAKEAWAYS FROM DMart Q3FY2023 RESULTS

• DMart recorded a consolidated revenue of Rs 11,569.05 crore, which is 25.5 per cent higher than that reported during Q3FY21. The rise in consolidated revenue is largely in line with what the company had shared in the provisional update earlier this month.
• Higher expenses and a sharp contraction in profitability dented the bottom line in the quarter.
• Company said that its operating profit, calculated as earnings before interest, tax, depreciation and amortization (EBITDA), rose 11.4 per cent YOY to Rs 965 crore, but the operating margin contracted by a sharp 106 basis points to 8.34 per cent, much higher than analyst’s estimates.
• Total expenditure increased 27 per cent YoY to Rs 10,789 crore, with staff cost rising nearly 19 per cent to Rs 192.31 crore.
• In Q3Fy22, DMart just added 4 stores compared to 8 it had in September quarter. The total store count as of 31 December 31 2022 stood at 306. An ET report has said that the brokerage Motilal Oswal Securities expected DMart to add 12 stores in the third quarter and take the total count to 314.
• The total revenue of DMart grew by nearly 45 per cent to Rs 31,496 crore YOY for the nine months ended December 2022, and operating profit increased 64 per cent tp Rs 2,877 crore. As a result, the profit after tax surged 78.4% YoY to Rs 2,051 crore.
• After touching a low of Rs 3645.20 during early trade, shares of DMart ended 4.75 per cent down on the NSE at Rs 3680.25 as against Rs 3863.70 on Friday

“Radhakishan Damani’s Avenue Supermarts share price has been under pressure as its Q3 results have come below market expectations, especially on the margin front. Hence, the stock is under sell off heat since early morning deals on Monday. However, high risk traders can buy around ₹3600 for near term target of ₹3,800 apiece levels maintaining stop loss at ₹3,500 levels,” said Ravi Singhal, CEO at GCL Securities