Avenue Supermarts Ltd., the parent company of DMart, is scheduled to release its financial results for the April-June quarter on Friday. Analysts expect the consumer staples sector to be impacted by weak underlying demand, leading to a muted performance in terms of top-line growth. Despite this, the company is expected to report a revenue increase of 17.8% year-on-year to Rs 16,583 crore, compared to Rs 14,069 crore in the same quarter last year.
Earnings before interest, taxes, depreciation, and amortization (Ebitda) are likely to rise 11% to Rs 1,354 crore from Rs 1,221 crore in the corresponding period last year. However, margins are expected to narrow to 8.2% from 8.7% a year ago, indicating some pressure on profitability. Net profit is expected to increase 14% to Rs 883 crore for the quarter, up from Rs 774 crore in the same quarter last year.
The expected revenue growth is a positive sign, but the narrowing margins and muted top-line growth suggest that the company is facing challenges due to weak demand. The consumer staples sector has been impacted by various factors, including changes in consumer behavior and economic uncertainty. Despite these challenges, DMart has been able to maintain its growth momentum, and the expected increase in revenue and net profit is a testament to its strong business model and execution.
The financial results will be closely watched by investors and analysts, as they will provide insights into the company’s performance and its ability to navigate the challenging market environment. The expected growth in revenue and net profit is likely to be driven by the company’s continued focus on expanding its store network, improving operational efficiency, and enhancing its customer offerings. Overall, while the expected results are muted, they still indicate a positive trend for DMart, and the company is expected to continue its growth trajectory in the coming quarters.