Q3-FY24 Avenue Supermarts Ltd Result Analysis

Earnings Snapshot

Methodology: Green=Increased, Red= Decreased, N/A= Inc/Dec is over 100%
Operational Expenses= Total Exp- Depreciation Exp. – Finance Cost

Analysis

Revenue from Operation

Q3-FY24 Performance   

1. ₹13,247.3 Crores, a 7.6% increase Q-o-Q and 17.2% Y-o-Y.
2. Strong revenue growth indicates increased consumer spending, reflecting the company's market presence and demand for its products.

Below graph represent eh historic Operational Revenue

Operating Profit Margin

Q3-FY24 Performance

1. 7.1%, a 0.3% increase Q-o-Q but a 1.6% decline Y-o-Y.
2. Margins improved sequentially, but a Y-o-Y decline suggests cost management challenges despite revenue growth.
Below graph represent eh historic OPM

Net Profit Margin

Q3-FY24 Performance  

1. 5.6%, a 0.2% increase Q-o-Q but a 1.9% decline Y-o-Y.
2. Similar to operating margins, net profit margins improved sequentially but declined Y-o-Y, indicating potential cost pressures.

Earnings Per Share (EPS)

1- Q3-FY24 Performance: Basic EPS of ₹11.32, a 11.9% increase Q-o-Q and 14.3% Y-o-Y.
2- Improved EPS reflects better profitability, potentially driven by operational efficiency and effective cost controls.

Overall Financial Health

Q3-FY24 Performance

1. Healthy operating profit and net profit, but margin compression indicates the need for cost management strategies.
2. Despite challenges, the company demonstrates resilience with positive earnings growth, signalling operational effectiveness.

Year-to-Date (9M-FY24) Performance
Consistent revenue growth of 17.9% Y-o-Y over 9 months’ showcases sustained demand. Operating profit and net profit growth indicate operational efficiency.

Comparison with Previous Year (Y-o-Y)
The company has navigated challenges with positive growth, but margin pressures need attention for sustained profitability.

In summary, Avenue Supermarts Limited has reported positive financial results with revenue and profit growth. However, margin challenges suggest a need for strategic cost management to enhance overall financial health.