Avenue Supermarts Limited, which operates D-Mart stores across India, witnessed its consolidated net profit for the June quarter tumble to 88 per cent to Rs. 40 crore (US $ 5.33 million), as against Rs. 323 crore it posted in the corresponding quarter last year.
The company’s consolidated total revenues for the quarter declined by 33 per cent to Rs. 3,883 crore as against Rs. 5,815 crore during the last year’s quarter.
Neville Noronha, CEO and Managing Director, Avenue Supermarts, while speaking about the latest figures, mentioned that as the COVID-19 pandemic continued to become a matter of concern across the country, followed by restrictions owing to the nationwide lockdown, it all led to impacting the company’s operational and financial performances during the quarter.
“Our revenue, EBITDA and profit for the quarter were significantly lower as compared to the same quarter last year,” he added.
Stores that were given the permission to operate without restrictions reported recovery at 80 per cent or more of pre-COVID-19 sales.
Neville further underlined that since “discretionary consumption continues to be under pressure, especially in the non-FMCG categories, this is impacting the gross margins negatively.”
Apart from that, the company also expressed its concern that since the authorities are insisting on selling only essential products in some cities, this leaves a big question mark on the company’s future revenues.
The chain of hypermarkets in India, founded by Radhakishan Damani in 2002, Avenue Supermarts currently operates around 216 stores across the country through its D-Mart stores.