DMart Q3 results: Strong growth continues

Avenue Supermarts Ltd., which operates the DMart chain of supermarkets, reported a 17% year-on-year (YoY) increase in consolidated net profit to Rs 690.41 crore for the third quarter of fiscal year 2023-24 (Q3FY24).

• Consolidated revenue from operations also grew 17.31% YoY to Rs 13,572.47 crore.
• The company's standalone net profit rose 14.9% YoY to Rs 641.07 crore.
• These results were broadly in line with analysts' expectations.

Key highlights:

• Same-store sales growth (SSSG) was 5%, indicating continued strong demand from existing customers.
• The company added 11 new stores during the quarter, taking its total store count to 324.
• Operating margin improved slightly to 8.2% from 8.1% in the previous quarter.

Analysts' views:

• Most analysts are positive on DMart's future prospects, citing its strong brand, efficient operations, and focus on value.
• Some analysts believe that the company's valuation may be a bit high, but they still recommend it as a long-term investment.

Overall, DMart's Q3 results were strong and continue to demonstrate the company's resilience in a challenging economic environment.

Additional details:

• DMart's Q3 results were driven by a combination of factors, including same-store sales growth, new store openings, and operating margin improvement.
• The company is confident in its future prospects and plans to continue to invest in store expansion and technology.
• DMart's stock price rose 3.5% after the Q3 results were announced.