DMart shares tank 6 percent post Q1 nos
Published On: Monday, July 13, 2020 | By: Team KnowMyStock
Shares of Avenue Supermarts tumbled 6 per cent to Rs 2,182, on Monday's trade after the company posted a weak set of numbers for the quarter ended June 2020. The Company on Saturday reported an 87.61 per cent year-on-year (YoY) plunge in consolidated net profit at Rs 40 crore for the June quarter. The Radhakishan Damani-led company had reported a profit of Rs 323 crore in the same quarter last year. Revenues were down 33.2% from Rs 5,815 in the previous year to Rs 3,883.2 crore in the quarter. Profit margin contracted 450 basis points YoY to 1 per cent for the quarter from 5.5 per cent in the corresponding quarter of last year. The operator of hypermarket stores DMart said that operations and financial performance during the quarter were hit by the lockdown. "For 1QFY21, Avenue Supermarts' top-line de-grew by 33% YoY to Rs 3,883 crore. Top-line was negatively impacted mainly due to COVID-19 lockdown. Currently, the company’s most of the stores operate at 80% of pre-COVID sales level.
"On the operating front, the company reported margin contraction (down by 738bp YoY to 2.9%), primarily on account of lower sales. The reported net profit de-grew by ~88% YoY to Rs 40 crore due to lower sales and poor operating performance," he added.
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