Avenue Supermarts, better recognized at D-Mart, for Q2FY21 posted a 38% (YoY) decline in consolidated net profit at Rs.199 crore but QoQ, it was up five-times, mainly on the back of lower bas effect as Q1 was the period when there was the intense lockdown. Thus QoQ comparison is not logical.

YoY, its consolidated revenue fell 11% at Rs.5306 crore.

EBITDA was down 36% at Rs.329 crore and margins slipped from 8.6% to 6.2%.

The company said that footfalls continue to be significantly lower than preCovid levels but basket values are significantly higher than pre-Covid levels. Both these data points are trending towards pre-Covid levels. Footfalls are getting better and basket values are reducing month over month.

Two years and older DMart stores did 87.5% of September 2019 sales in the month of September 2020. We have a total of 158 stores which are 2 years or older. Since August, most of its stores are operating at pre-Covid operating hours and some stores are operating longer hours than before Covid-19. Longer hours are to improve social distancing and giving more options to our shoppers.

During the quarter, it closed two of its Mumbai stores for customers and converted them into fulfillment centers (FC) for its ECommerce business. One each in Mira Road and Kalyan. Both these locations have an alternate DMart store within 4 kms.

The stock today opened almost 1% lower at Rs.1968.50 but rose from there, it went up over 3.5% to Rs.2055.95; it is currently trading in the green at Rs.2037. Its 10% UC of the day is at Rs.2380.30.