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 Crore | Mar-23 | Mar-22 | YOY | Dec-22 | QOQ |
| Total Income (Rs cr) | ₹ 10,594 | ₹ 8,786 | 20.57% | ₹ 11,569 | -8.43% |
| Operating Profit (Rs cr) | ₹ 607 | ₹ 593 | 2.44% | ₹ 797 | -23.80% |
| Net Profit (Rs cr) | ₹ 460 | ₹ 427 | 7.80% | ₹ 590 | -21.97% |
| Diluted EPS (Rs) | ₹ 7.06 | ₹ 6.54 | ₹ 9.03 | ||
| OPM | 5.73% | 6.75% | 6.89% | ||
| Net Margins | 4.34% | 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.