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Avenue Supermarts shares fall 4% as Q2 profit drops Should you buy, sell or hold?

Avenue Supermarts on Saturday reported a consolidated net profit of Rs 623.35 crore for the quarter ended September 30, 2023, which was down by over 9% from Rs 685.71 crore reported by the company in the corresponding period of the previous financial year. The company which operates DMart reported a consolidated revenue from operations at Rs 12,624 crore which was up by 18.66% from Rs 10,638.33 reported by the company in Q2FY23.

Avenue Supermarts Q2 Results: PAT drops over 9% YoY to Rs 623 crore even as revenue jumps 19%

The company which operates DMart reported a consolidated revenue from operations at Rs 12,624 crore which was up by 18.66% from Rs 10,638.33 reported by the company in Q2FY23. On a sequential basis, the revenue grew 6.4% from Rs 11,865.44 crore in the June 2023 quarter. EBITDA margin for the quarter was 8%, down from 8.4% in Q2FY23.

Avenue Supermarts Q2 total revenue crosses Rs 12,624 cr; added 9 DMart stores in Q2 FY24, ET Retail

However, DMart s consolidated net profit declined 9% to Rs 623.35 crore in Q2 FY24, as compared to Rs 685.71 crore in the corresponding quarter of last year. Neville Noronha, CEO and MD of Avenue Supermarts said, “Q2 FY 2024 saw revenue growth of 18.5% as compared to the corresponding quarter of last year. Our gross margins continue to be lower compared to the same period in the previous year due to lesser contribution from the higher margin General Merchandise and Apparel business."

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