The consolidated revenue for the food & grocery retailer rose 18.53 per cent YoY to Rs 8,786 crore in the March quarter compared with Rs 7,412 crore in the corresponding quarter last year.
Ebitda for the quarter rose to Rs 739 crore from Rs 613 crore YoY. Ebitda margin came in at 8.4 per cent compared with 8.3 per cent in the year-ago quarter. PAT margin stood at 4.8 per cent against 5.5 per cent YoY.
CEO & Managing Director, Neville Noronha said January started extremely well but the Omicron wave of Covid-19 reduced the momentum in the middle of the month.
“These waves typically hurt the high margin and discretionary items more. As is the trend of the past, recovery does take 40-50 days after restrictions are removed or anxiety of a Covid wave recedes. Omicron was a milder wave and hence had a significantly lower negative impact. March 2022 month again had robust recovery and very satisfactory like for like growth vis-a-vis March 2021,” he said.
“In general, the quarter performance and past two waves of stop-start-stop give us extreme confidence on the resilience of the business to recover in the short term,” Noronha said.
The company said its FMCG business was recovering well.
The value proposition is being distinctly seen by our customers in this segment, it said, adding that it is hard to estimate if the relative lower growth in the discretionary non-FMCG segment is due to a secular change over time due to e-commerce shift or due to inflation or due to significantly higher Covid related negative economic impact for certain shoppers.
“We would be able to give that qualitative interpretation only if there are no more Covid shutdowns/restrictions over at least two more quarters. High inflation environment is helping us manage our costs better and also deliver relatively better value to shoppers,” the company said.
In the case of brick and mortar business, the company said it ended FY22 with growth across key financial parameters of revenue, Ebitda and PAT.
Two years and older DMart stores grew by 16.7 per cent during FY22. DMart said it had 214 stores that are 2 years or older as of March 31.
“Our sales from general merchandise and apparel moved slightly up at 23.40 per cent as compared with 22.90 per cent in the previous year. However, this may not be representative of post-Covid steady state contribution from these Non-FMCG categories. We remain more optimistic on this for the future,” DMart said.
The company said it opened 50 additional stores during the year, taking its total to 284 stores. DMart had a record opening this year primarily because of delayed openings in the previous year due to Covid, the company said.
In case of DMart Ready, the company said the gradual expansion of e-commerce business continued during the year.
It said it is now present in 12 cities across the country. It commenced operations in 7 new cities during the year.
“Post Omicron wave, the ecommerce business has slowed down its growth trajectory. However, in general we are quite happy and excited about this business. We are learning every single day. DMart Ready has again had a tremendous year. Top line sales this year were slightly more than double that of last year,” DMart said.