D-MART Q4FY23 PAT up 7.8% at Rs460 crore on the back of 5.4% growth in quarterly EBITDA

D-Mart reported 20.6% growth in total revenues for the March 2023 quarter on consolidated basis at Rs10,594cr. Sequential revenues were down -8.43%. For the full year, revenues were up 38% at Rs41,833 crore. Full year EBITDA was also higher by 46.3% at Rs3,659 crore. For the March 2023 quarter, EBITDA grew by just 5.4% due to lower sequential sales and higher costs of operation.

During the quarter, the company added 18 rural stores and added 40 stores in FY23. D-Mart follows the EDLC-EDLP principle. This is about every day low cost and everyday low price. The way D-Mart operates is to beat down costs through bulk purchases and then pass on the benefits to customers. In fact, 2-year old stores of D-Mart reported 24% growth in revenues for FY23, a sign of improving revenue per square feet.

Financial highlights for Mar-23 compared yoy and sequentially

Avenue Supermarts

Rs in CroreMar-23Mar-22YOYDec-22QOQ
Total Income (Rs cr)₹ 10,594₹ 8,78620.57%₹ 11,569-8.43%
Operating Profit (Rs cr)₹ 607₹ 5932.44%₹ 797-23.80%
Net Profit (Rs cr)₹ 460₹ 4277.80%₹ 590-21.97%
      
Diluted EPS (Rs)₹ 7.06₹ 6.54 ₹ 9.03 
OPM5.73%6.75% 6.89% 
Net Margins4.34%4.86% 5.10% 

 

Out of 324 stores now, 234 stores are more than 2 years old. Operating margins tapered from 6.75% to 5.73% yoy while the net margins also tapered from 4.86% to 4.34% yoy. This is due to weak sales in the quarter and higher than expected operating costs. In the overall product mix of D-Mart, FMCG and staples have seen good offtake while the demand for general merchandise and apparel were quite weak.

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