Avenue Supermarts

This D-Mart company posted fantastic numbers for Q1FY18.  On a 36% (YoY) rise in income at Rs.3598 crore, thanks to the drop in interest cost outgo, D-Mart posted a healthy 48% jump in net profit at Rs.175 crore.  What really helped was the huge jump up in other income by over 4 times from Rs.5 crore to Rs.23 crore – this was on account of interest income on the money raised during IPO, which was parked in FDs. Another fact which aided was the 13% drop in interest income

EBITDA was up 30% at Rs.303 crore and margins dropped from 8.8% to 8.4%. During the quarter the company added one more store, taking the total tally to 132.

On the GST front, the company has said that it did witness disruption in the first few weeks of implementation but said that things have more or less moved back to normalcy as supply from vendors is slowly getting normalized too. The company expects volumes to pick up on goods where GST is lower than previous taxes.

The listing of D-Mart or Avenue Supermarts was like getting ek-pe-ek-free offer! As against the IPO price of Rs.299, it got listed on the BSE at Rs.604.40, a jaw-dropping 102% upside listing! And currently, it is quoted at over Rs.900. This kind of premium listing has not been witnessed in a long time and for now, seems more than fully priced.