Avenue Supermarts Q3 results update!
Last updated: 09 Jan, 2021 | 02:12 pm
Profit rises: Avenue Supermarts has reported a 16% on-year rise in net profit to Rs 447 crore, beating street estimates. Analysts had earlier estimated a net profit of about ₹420 crore. The sequential growth in the bottom line was at 125.1%, indicating robust recovery in the latest quarter.
Revenue growth: Consolidated revenue rose 11% to ₹7,542 crore as compared to ₹6,808 crore in the year-ago period. This was also higher than the ₹ 7,459.8 crore average estimate of analysts.
Margins improve: The company’s EBITDA margin has improved in the quarter, thanks to lower other expenses, despite higher revenue. Agile operating expenses management and a surge in festival shopping helped the company deliver a significantly better margin than earlier quarters.
Segment performance: The company said that overall sales and sales mix is now trending very close to its usual times except for specific customer consumption changes post Covid-19. Apparel, laundry, footwear, travel and such relevant out of home usage categories are taking more time to recover.
Avenue Supermarts has shown considerable growth in business in the Oct-Dec 20 period. The company has said that restricted store operations in certain cities after Diwali due to night curfews and weekend closure led to significantly larger declines in such stores over a year earlier. Further, the firm continues to face inconsistent supply from the sectors other than fast moving consumer goods. Availability in certain categories is likely to get worse before getting better and can impact sales mix and margins in the near term, the company has cautioned.