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

May 14, 2023

By: BlinkX Research Team

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

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.