For the second quarter of the current fiscal year, from July to September, Avenue Supermarts is likely to report soften numbers for net profit. For the unversed, Avenue Supermarts also operates the supermarket retail chain DMart. Sources familiar with the development stated Avenue Supermarts may report softened net profit numbers on Saturday, October 14, 2023. What could be the reason for Avenue Supermarts’ below-expected operational performance? Since the experts have speculated that the net profit numbers of Avenue Supermarts for the second quarter would be softened, people have been scrounging the weblogs to find out what was the factor. In case, you are also scrambling to the web regarding the same, keep reading this article and find out more information.
For the current fiscal year 2023-24, the supermarket retail chain DMart reportedly performed below average in the second quarter of FY24. Due to poor operational performance and sector-wise slowdown, Avenue Supermarts is likely to report softer numbers for net profit in the July-September period. Kindly note that billionaire Radhakrishan Dhamani’s company’s unexceptional operations projected a profit by 18.5 percent taking it to Rs 12,308 crore in the second quarter of the current fiscal year. Shift to the next section and read more details.
Notably, DMart added nine more stores during the quarter-under-review period which took the total number of stores to 336 during the second quarter from July to September. In a regulatory filing, Avenue Supermarts said to the stock exchanges the company had earlier witnessed a revenue from operations of Rs7,649.64 crore in the second quarter of the previous fiscal 2022-23. Avenue Supermarts said at the end of September month in the regulatory filing, “Standalone Revenue from operations for the quarter ended September 30, 2023, stood at Rs12,307.72 crore,” Continue reading this article and find out more details.
Analysts and Brokerages are still optimistic about Avenue Supermarkets’ net sales and revenue growth as both are likely to clock a double-digit growth in the second quarter. According to the reports, the net profit of the retail chain is expected to lie in the range of three to five percent on the slowdown in the industry. The grocery segment of the retail industry of India is said to register recovery led by DMart with an increase of 19% in net sales, according to Centrum Broking, a domestic brokerage firm. The demand trend for the retail coverage universe remained moderate. Till the last quarter, companies reporting mid-premium and premium segments outperformed their other counterparts.