NEW DELHI: Avenue Supermarts (D-Mart) on Saturday reported a 2.1 per cent year-on-year (YoY) rise in profit after tax (PAT) at Rs 257 crore for December quarter.The company had reported Rs 252 crore profit in year-ago quarter.
The flattish growth in profit was primarily due to gross margin reduction on account o price cuts, food grocery retailer told BSE.Revenue for quarter jumped 33.2 per cent YoY to Rs 5,451 crore.While brokerages were largely expecting Radhakishan Damani-led firm to report 30 per cent-plus growth in sales, they were expecting retailer to report profit growth in 10-18 per cent range.The company said its Ebitda for quarter rose 7.5 per cent YoY to Rs 453 crore.
Ebitda margin contracted 200 basis points to 8.3 per cent in December quarter against 10.3 per cent in year-ago quarter.
PAT margin for quarter at 4.7 per cent shrank 140 basis points over 6.1 per cent in same quarter last year.
The company added 4 stores in during quarter.
"Operating cost inched upward due to preloading of certain expenses primarily around capability building across infraastructure and people," said CEO MD Neville Noronha."We also overspent a little to manage festive season better through longer operating hours.
We continue to operate longer hours in certain stores after festive season," Neville said.