Standalone Total Revenue down by 12.3% at Rs. 5,218 Crore

 

Standalone PAT down by 36.9% at Rs. 211 Crore

For the Quarter ended September 30, 2020 (Q2FY21):

 

Standalone Results

· Total Revenue stood at Rs. 5,218 Crore, lower by 12.3% y-o-y

· EBITDA of Rs. 325 Crore; y-o-y decline of 37.0%

· PAT stood at Rs. 211 Crore; y-o-y decline of 36.9%

· Basic EPS for Q2FY21 stood at Rs. 3.25, as compared to Rs. 5.34 for Q2FY20

· 6 stores were added and 2 were closed and converted into FulfilmentCentre for Ecommerce

Business in Q2FY21

For the Half Year ended September 30, 2020 (H1FY21):

· Total Revenue stood at Rs. 9,051 Crore, lower by 22.8% y-o-y

· EBITDA of Rs. 434 Crore; y-o-y decline of 61%

· PAT stood at Rs. 260 Crore; y-o-y decline of 61.1%

· Basic EPS for H1FY21 stood at Rs.4.02, as compared to Rs. 10.72 for H1FY20

· 8 stores were added in H1FY21 and 2 were closed and converted into FulfilmentCentre

for E-Commerce Business in H1FY21

 

Mumbai, October 17, 2020: Avenue Supermarts Ltd. (ASL), one of the largest food & grocery retailers in India,today declared its standalone and consolidated financial results for the quarter and half year ended September30, 2020.

 

Standalone results

 

Total Revenue for the quarter ended September 30, 2020 stood at Rs. 5,218 crore, as compared to Rs. 5,949crore in the same period last year. Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) inQ2FY21 stood at Rs. 325 crore, as compared to Rs. 515 crore in the corresponding quarter of last year. EBITDAmargin stood at 6.2% in Q2FY21 as compared to 8.7% in Q2FY20.

 

Net Profit stood at Rs. 211 crore for Q2FY21, as compared to Rs. 333 crore in the corresponding quarter of lastyear. PAT margin stood at 4.0% in Q2FY21 as compared to 5.6% in Q2FY20.

 

Basic Earnings per share (EPS) for Q2FY21 stood at Rs. 3.25, as compared with Rs. 5.34 for Q2FY20.

 

Total Revenue for H1FY21 stood at Rs. 9,051 crore, as compared to Rs. 11,730 crore in the same period last year.Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) in H1FY21 stood at Rs. 434 crore, ascompared to Rs. 1,111 crore during H1FY20. EBITDA margin stood at 4.8% in Q2FY21 as compared to 9.5% inQ2FY20.

 

Net Profit stood at Rs. 260 crore for H1FY21, as compared to Rs. 669 crore in H1FY20. PAT margin stood at 2.8%in Q2FY21 as compared to 5.7% in Q2FY20.

 

Basic Earnings per share (EPS) for H1 FY21 stood at Rs. 4.02, as compared with Rs. 10.72 for H1FY20.

 

Consolidated results

 

Total Revenue for the quarter ended September 30, 2020 stood at Rs. 5,306 crore, as compared to Rs. 5,991crore in the same period last year. Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) inQ2FY21 stood at Rs. 330 crore, as compared to Rs. 517 crore in the corresponding quarter of last year. EBITDAmargin stood at 6.2% in Q2FY21 as compared to 8.6% in Q2FY20.

 

Net Profit stood at Rs. 199 crore for Q2 FY21, as compared to Rs. 323 crore in the corresponding quarter of lastyear. PAT margin stood at 3.7% in Q2FY21 as compared to 5.4% in Q2FY20.

 

Basic Earnings per share (EPS) for Q2FY21 stood at Rs. 3.07, as compared with Rs. 5.17 for Q2FY20.

 

Total Revenue for H1FY21 stood at Rs. 9,189 crore, as compared to Rs. 11,805 crore in the same period last year.Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) in H1FY21 stood at Rs. 441 crore, ascompared to Rs. 1,114 crore during H1FY20. EBITDA margin stood at 4.8% in Q2FY21 as compared to 9.4% inQ2FY20.

 

Net Profit stood at Rs. 239 crore for H1FY21, as compared to Rs. 646 crore in H1FY20. PAT margin stood at 2.6%in Q2FY21 as compared to 5.5% in Q2FY20.

 

Basic Earnings per share (EPS) for H1FY21 stood at Rs. 3.68, as compared with Rs. 10.35 for H1FY20.

 

 

D-Mart follows Everyday low cost - Everyday low price (EDLC-EDLP) strategy which aims at procuring goods atcompetitive price, using operational and distribution efficiency and thereby delivering value for money tocustomers by selling at competitive prices.

 

Commenting on the performance of the company Mr. Neville Noronha, CEO & Managing Director, AvenueSupermarts Limited, said:

 

DMart (Brick and Mortar) Business Overview

 

Lockdown restrictions due to Covid-19 were further eased during this quarter. Within the continued uncertaintyfrom Covid-19, our business has seen improvement and it continues to gradually progress towards prepandemiclevels. Month-on-Month sales have improved during this quarter – August was better than July andSeptember was better than August. The highlight being that footfalls continue to be significantly lower than pre-Covid levels but basket values are significantly higher than pre-Covid levels. Both these data points are trendingtowards pre-Covid levels. Footfalls are getting better and basket values are reducing month over month.

 

Two years and older DMart stores did 87.5% of September 2019 sales in the month of September 2020. Wehave a total of 158 stores which are 2 years or older. Since August, most of our stores are operating at pre-Covidoperating hours and some stores are operating longer hours than before Covid-19. Longer hours are to improvesocial distancing and giving more options to our shoppers.

 

FMCG and staples demand remains robust. September 2020 sales of all stores exceeded September 2019 salesfor FMCG and Staples while General Merchandise and Garments did lesser sales in the same period. However,discretionary consumption has seen significant improvement over Q1FY21. We were at 22.7% revenuecontribution from General Merchandise and Apparel business in Q2FY21 as compared to the usual 27.3%contribution for the year. We couldn’t sell this category of products for nearly 2 months of Q1FY21 due toregulatory restrictions and once permitted we did insignificant sales due to tightening of discretionary spend byconsumers. Almost all of the shopping in Q1FY21 was need based and essential in nature. In light of that,Q2FY21 sales contribution from General Merchandise and Apparel is encouraging.

 

New Stores Opening

 

We continue to focus on new store openings and have opened six new DMart stores during the quarter. Wehave closed two of our Mumbai stores for customers and converted them into fulfilmentcentres (FC) for our Ecommercebusiness. One each in Mira Road and Kalyan. Both these locations have an alternate DMart storewithin 4 kms.

 

DMart Ready

 

We continue to increase our footprint in Mumbai Metropolitan Region covering additional pin codes. Mira Roadand Kalyan FC addition was to deepen our reach and serve customers better in these regions.

 

We have also expanded our E-Commerce operations in select pin codes of Pune City.

 

Our Employees, Associates and Customers

 

Our precautions continue to be as stringent as before to ensure our employees are safe and customers areassured of a 100% safe environment to shop. We continue with all our Covid-19 specific policies around leavesand benefits so each employee and associate is encouraged to be safe and responsible if she or he or theirfamily member is showing any Covid-19/flu-type symptoms.

 

Conclusion

 

The progress of the pandemic and its impact on consumer spending during the festival period will determine ourfinancial performance for the next quarter. While large suppliers and FMCG business is trending better on salesas well as supplies, supply chains and manufacturing in the non FMCG SME sector will take some time to getback to pre-Covid levels. Longer lead times, a slower response to immediate demand and the biggest festivals soclose on the anvil would be more complicated for the non FMCG SME sector. We are providing all necessarysupport and it’s a matter of time to get all back on schedule. We are glad to state that conversations are nowmoving from lack of demand to shortage of supplies in these categories.