Dmart posts marginal PAT growth of 2.1 per cent

Grocery retailer Avenue Supermarts Limited reported 33 per cent growth in revenue for Q3FY19 but PAT growth was flat due to a reduction in gross margin. The company reported its Q3FY19 results on Saturday.

The company’s total revenue for Q3FY19 was Rs. 5,451 crore as against Rs. 4,094 crore in Q3FY18, which is a YoY growth of 32.9 per cent. EBITDA for the quarter was at Rs. 453 crore, an increase of 4.7 per cent, while EBITDA margin was at 8.3 per cent in Q3FY19 as against 10.3 per cent in Q3FY18.

Net profit for Q3FY19 was almost flat at Rs. 257 crore as against Rs. 252 crore YoY. PAT margin for the quarter was at 4.7 per cent as compared to 6.1 per cent YoY. The dip in PAT was attributed to reduction in gross margin due to price cuts, said the company. Also, the company incurred a higher operating cost for building infrastructure and human resources.

The company’s basic EPS for the quarter was at Rs 4.12 as against Rs. 4.03 YoY.

On Friday, the stock of Avenue Supermarts Limited closed at Rs. 1568.95 per share, down Rs. 17.85 or 1.12 per cent on BSE.