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NEW DELHI: Radhakishan Damani owned Avenue Supermarts will likely report 16-18 per cent year-on-year (YoY) growth in net sales for the March quarter, analysts tracking the company said. Though, sequentially, it will be lower.

Analysts have a varied estimate of net profit that the company may report, with projections ranging from 5-400 per cent growth year on year.

Avenue Supermarts, which runs D-Mart stores popular in Western India, will announce its quarterly numbers on Saturday.

“Growth momentum to be impacted by Covid in January sales in Q4, while margins to be under pressure led by operating cost of D-Mart Ready business and inferior mix due to higher inflation,” said YES Securities.

The broker estimates a 15 per cent growth in net profits. It sees EBITDA rising 33 per cent and revenue increasing 18 per cent.

Kotak Securities noted that the company informed of an 18 per cent YoY increase and a 5 per cent QoQ decline in revenues, as per a recent update.

“The YoY revenue growth is on expected lines and seems to be driven by a revival in SSSG (Same-Store Sales Growth) as well as the contribution from 21 new stores. The sequential decline was also expected on account of seasonality (3Q witnesses incremental festive season demand),” analysts at Kotak said.

“We expect EBITDA margin to be lower by 130 bps on a sequential basis due to higher expenses related to employees, utilities, etc. on the back of strong store additions in 4Q.”

The company reported a 23.71 per cent YoY jump in consolidated net profit in the quarter ending December. Revenue for the quarter rose 22.22 per cent. Profit margins had also improved.

Axis Securities said revenues will likely witness a growth of 16 per cent YoY as per the company’s business update driven by steady SSSG and record 21 new store addition in Q4FY22 – highest in any quarter.

“Gross & EBITDA margin is expected to remain flat owing to mix and inflation. Earnings growth to be in-line with revenue growth,” it said.


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