Dmart share price falls despite strong Q2 earnings, check highlights

Avenue Supermarts (Dmart) reported its September quarter numbers on Saturday. The profits were above expectations, but margins missed the estimates. On Monday, Dmart closed 3.6% lower. In 2022, the share price has fallen over 10% against NIFTY50 flat returns. Let us look at its Q2FY23 results in detail.

Dmart Q2 earnings: Highlights
 

DMart Q2FY23 Net profit jump: DMart’s consolidated net profit jumped 64.1% YoY to Rs 685.8 crore in the July-Sep period, higher than street estimates. Brokerages estimated the company's profit after tax to grow to Rs 655 crore. The company reported a strong bottomline on account of a decrease in its expenses. Last year in the same quarter, the net profit reported was Rs 417.8 crore. The net profit in Q1FY23 was Rs 680 crore. 

DMart Q2 Revenue rises: DMart’s consolidated revenue increased by 36.6% on-year to Rs 10,638.3 crore. It was Rs 7,788.9 crore in the year-ago quarter. Last quarter the revenue was Rs 9,807 crore.

DMart Q2 Operating profit and margins decline: It reported an EBITDA of Rs 892 crore, a growth of 33% YoY. EBITDA margin stood at 8.4% in Q2FY23, as compared to 8.6% in Q2FY22. PAT margin for the September quarter improved to 6.4%, up 110 basis points over 5.3% in the same quarter last year. 

EPS: Basic Earnings per share (EPS) for Q2FY23 stood at Rs 10.58, as compared to Rs 6.45 for Q2FY22.

DMart Store count: The store count reported by the company as of 30 September 2022 is 302. It added 8 new stores in the July-Sep period.

Smart Q2 earnings: Store Count Additions

DMart Q2FY23 Results for 2022 Management Commentary: "We ended Q1FY23 with growth across all key financial parameters. There has been a very good recovery in overall sales. However, this quarter’s performance is not comparable to the same period last year due to the second wave of Covid-19 during that time.", Mr. Neville Noronha, CEO & Managing Director.", Mr. Neville Noronha, CEO & Managing Director.