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Avenue Supermarts Results Analysis - Avenue Supermarts Annual Report | Invest Yadnya

Avenue Supermarts Limited Q1FY22 Results | Yadnya Investment Academy

Published on 14 July 2021 Views 113 Comments 0

Avenue Supermarts has announced its quarterly results for Q1FY22 on Saturday 10th July 2021. Get the highlights of the quarterly performance of the company in this article.

Introduction: Avenue Supermarts Analysis - Avenue supermarts fundamental analysis, Avenue Supermarts Stock Analysis & Avenue Stock Supermarts Analysis 

Avenue Supermarts Limited, which owns and operates D-Mart stores- organised retail and supermarkets-hasthan last year’s same period achieved its quarterly results for Q1FY22. The company has announced its quarterly result on Saturday 10th July 2021. Results show the company’s outstanding performance every year but downfall compared to the previous quarter.

Q1FY22 Results (Standalone): Avenue Supermarts Financial Results - Avenue Supermarts Annual Report & Avenue Supermarts Limited Annual Report

 Revenue from Operations of the company for Q1FY22 stood at Rs. 5,031.75 Cr. up by 31.3% YoY from Rs. 3,833 Cr. Same has fallen by -31.1% QoQ from Rs 7,303 Cr. in Q4FY21.

  • EBITDA of Avenue Supermarts has come down to Rs. 221 Cr. in Q1FY22 against Rs. 617 Cr. in Q4FY21, amounting to a fall of around 64% QoQ, whereas EBITDA of the company grew by 103.1% YoY from Rs. 109 Cr. in Q1FY21.

  • Likely EBITDA Margin of the company has also decreased quarter-on-quarter by 404 bps from 8.44% in Q4FY21 to 4.40% in the quarter ended 30th June 2021. However, Year-on-Year, EBITDA margin has expanded by 140 bps from 3% in the same quarter of the previous financial year.

  • The contraction in EBITDA has resulted in a fall of Profit Before Tax (PBT) quarterly. The PBT of the company for Q1FY22 is Rs. 156.29 Cr. up by 134.8% YoY from Rs. 66.5 Cr. in Q1FY21. Quarterly, it has come down from Rs. 564.22 Cr. in Q4FY21, down by 72.3%.

  • The company’s Net Profit has also gone up by around 132.3% YoY and reported a fall of 73.5% QoQ. As a result, the company’s net profit at the quarter ended 30th June 2020 and 31st March 2021 are Rs. 49.5 Cr. and 435 Cr. respectively. For the quarter ended 30th June 2021, the company reports a Net Profit of Rs. 115 Cr.

  • Net Profit Margin of the company for Q1FY22 stood at 2.3%, with a fall of 330 bps QoQ and a rise of 100 bps YoY.

Avenue Supermarts Limited- Q1FY22 Result

Avenue Supermarts Limited- Q1FY22 Result

Revenue Growth Trend: Avenue Supermarts Share Dividend & Avenue Supermarts Limited Dividend

  • Avenue Supermarts have reported constant revenue growth of around 23%-24% between Q1FY20 to Q4FY20 but has drastically fallen to -34% and -12% in Q1FY21 and Q2FY21, respectively.

  • From Q3FY21 company started to witness positive growth in the revenue from 10% in Q3FY21 to 18% in Q4FY21 and finally 31% in the quarter ended 30th June 2021.

  • Key Drivers for Growth in Revenue:

  • Imposition of Lockdowns at different timings in different regions during Q1FY22.

  • No or relatively less strict lockdowns, In addition to this, there was some relaxation in this lockdown.

  • Faster recovery enabled Early lifting up of lockdowns and restrictions.

  • Personal Mobility was Less Stringent.

Avenue Supermarts- Revenue Growth Trend

Avenue Supermarts- Revenue Growth Trend

Store Addition Trend: Avenue Supermarts Chart

  • Avenue Supermarts has added 4 new stores in Q1FY22.

  • As of June 30, 2021, the Company owns 238 stores (4 stores added in Q1FY22) with a Retail Business Area of 9.01 million sq. ft. across Maharashtra, Gujarat, Daman, Andhra Pradesh, Karnataka, Telangana, Tamil Nadu, Madhya Pradesh, Rajasthan, NCR, Chhattisgarh, and Punjab.

Avenue Supermarts- Store Addition Trend

Avenue Supermarts- Store Addition Trend

Q1FY22 Business Highlights: Avenue Supermarts Share Price History

  • Added 22 new stores post Q1FY22.

  • Across these multiple periods of lockdowns, the company realised that a store needs at least 45 days of unhindered operational time to get back to pre-Covid sales momentum.

  • Despite lesser operating hours, more customer footfalls were seen this year, leading to higher sales compared to the same period last year.

  • No significant impact on the supply chain during the quarter.

  • Inventory Levels are also gradually moving towards normal levels.

  • Construction activity has also commenced at all sites, which will result in more addition of stores in coming quarters.

  • E-commerce business has picked up significantly during the crisis and now contributes c. 3% to consolidated revenue.

DMart Ready:

  • The DMart Ready business continued its gradual expansion across the MMR region, Ahmedabad, Pune, Bangalore, and Hyderabad.

  • Thus far, the results on the top line are very encouraging. The second wave has given further impetus to the business.

Conclusion: Avenue Supermarts Stock Review

The Organized Retail Industry is getting huge competition from the e-retail sector, but the potential for market share growth is enormous for the Organized Retail Sector. Avenue Supermarts has presented a significant quarterly result every year on low base effect but has suffered sluggishness quarterly.

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