Why DMart's Shares Are Climbing Today After Q4 Results

Shares of Avenue Supermarts, the parent firm of the retail chain DMart, were gaining on Monday after its profit numbers for the fourth quarter grew and margins strengthened.

What Happened: DMart’s quarterly report card showed a 22% year-on-year increase in net profits, growing to ₹563.1 crore from ₹460.1 crore in the same period last year.

DMart’s revenue from operations also witnessed significant growth, reaching ₹12,726 crore during Q4, up 20% compared to ₹10,594 crore in the same period last year.

However, on a sequential basis, DMart reported an 18% decline in net profit from ₹690.7 crore in the quarter ending December 2023. Additionally, the company’s revenue from operations experienced a 6% quarter-on-quarter decrease from ₹13,572.4 crore in Q3FY24.

See Also: Kotak Mahindra Bank Shares Surge After Strong Q4 Numbers: Here’s Why Analysts Are Upgrading The Stock

In terms of operational performance, DMart’s EBITDA for Q4 stood at ₹944 crore, compared to ₹772 crore in the corresponding quarter of the previous year. The EBITDA margin for Q4FY24 was reported at 7.4%, slightly up from 7.3% in Q4FY23.

Neville Noronha, CEO & Managing Director of Avenue Supermart, commented on DMart’s performance, highlighting growth in key financial parameters. He noted a 9.9% growth in stores aged two years and older during FY2024 compared with FY 2023, with 284 stores falling into this category. Noronha also mentioned the opening of 41 new stores during the year, bringing the total store count to 365. He pointed out the continued contribution from general merchandise and apparel in Q4, leading to gross margin improvement compared to the same quarter in the previous fiscal year.

Regarding the E-Commerce business, Noronha stated that operations commenced in one new city, Gurugram, during the year, while the company continued to expand its presence in existing cities, reaching a total of 23 cities across India.

Price Action: DMart’s share price was up 0.88% at ₹4,652.75 in early trade on Monday. The stock is up around 14.5% so far this year.

Read Next: Titan Shares Tank 4% As Q4-Print Disappoints Brokerages

Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.

Posted In: EarningsEquitiesNewsMarketsMoversTrading IdeasAvenue SupermartsDMart