NEW DELHI (Reuters) – India’s Avenue Supermarts, which operates the DMart chain of retail stores, reported a 22.4% rise in fourth-quarter profit on Saturday helped by rising footfall in its stores that sell groceries and apparel below the maximum retail price.
The retailer, known for discounts on everything from food to clothes, reported a consolidated net profit of 5.63 billion rupees ($67.5 million) for the quarter ended March 31, up from 4.60 billion rupees a year ago.
Consolidated sales increased 20% in the fourth quarter, compared with 17.3% in the prior quarter, helping to boost the retailer’s bottom line.
Its provision of products at affordable prices has attracted inflation-weary consumers.
The Mumbai-based company’s earnings before interest, taxes, depreciation and amortization (EBITDA) margin rose to 7.4% in the quarter from 7.3% in the year-ago period.
DMart’s consolidated revenue rose to 127.27 billion rupees from 105.94 billion rupees in the year-ago quarter.
During the fourth quarter, DMart opened 24 stores across the country, and had a total of 365 stores as of March 31.
Shares of Avenue Supermarts rose about 11% during the March quarter; it closed 0.2% higher on Friday.
(Reporting by Arpan Chaturvedi; editing by Giles Elgood)
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