InvestorQ : What explained the sharp growth in profits of D-Mart?
prachi Patwardhan made post

What explained the sharp growth in profits of D-Mart?

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sara Kunju answered.
2 months ago
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Avenue Supermarts, owner of D-Mart brand saw 47% growth in revenues for Q2 Rs.7,789 crore. D-Mart appears to be gained with limited impact of COVID-19 or COVID 2.0 in the current quarter. Its core model of focusing on procuring goods in bulk at competitive prices and then passing on the benefits to the end customer through efficiencies.

For the quarter, while operating profits were up 141% at Rs.553 crore, the net profits were up 110% at Rs418 crore. The first half profit growth of 115% yoy indicates structural growth in earnings and hints that the COVID pressures may be over. Net margins at 5.36% were a sharp improvement over the last year and the previous quarter.

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