Avenue Supermarts Q3 Results

Like in the last few quarters, Avenue Supermarts, the company the operates the D-Mart chain, has continued the tradition of announcing its quarterly sales on the first day of the new quarter. These are standalone sales that D-Mart reports and the numbers are not yet confirmed by the statutory auditors, but it is a good step towards transparency.

For the quarter ended December 2021, Avenue Supermarts has reported sales revenues of Rs.9,065 crore. This is nearly 46% higher than the revenues of Rs.5,218 crore reported for the Dec-20 quarter. In a way, the current quarter marks a sharp recovery back to pre-COVID levels as normalcy has largely returned to the retail business.

It must be noted that these are not official results of the Dec-21 quarter and that is yet to be confirmed by the auditors. This is more of an indicative view to allow investors and other stakeholders to know how the top line performance of the company was during the recently concluded quarter.

The company has continued its store accretion in the quarter adding 17 stores to its portfolio during the quarter. As of the end of December 2021, D-Mart has a total of 263 stores across the length and breadth of India, although its primary focus is more in the state of Maharashtra.

The stock has been one of the big outperformers since listing and is now up nearly 15 times since its 2017 IPO. Despite listing more than 100% higher, even from the listing price, the stock is up around 6-7 times in over 4 year time frame, making it one of the stellar performers in the Indian market. Of course, it is the most expensive retail stock in the world by P/E ratio.

D-Mart has followed the Wal-Mart model of retail of squeezing the suppliers and vendors with assured volumes. Such lower costs are eventually passed on to the end consumer. This has made D-Mart one of the most valuable stocks in India and its founder, Radhakishan Damani, among the richest Indians in terms of equity holding value.

The results of D-Mart will be announced on 08th January and the company has typically been among the early announcers of quarterly results in India. This year, it will be the first among the Top-100 companies by market capitalization to announce its quarterly results for the December 2021 quarter.

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