DMart Q4 Results Preview: Profit may rise 23% YoY; margins to expand
DMart Q4 Results Preview: An average of four brokerages expect the net profit for the January-March period to grow 23% year-on-year. Revenue for the period may also jump 20% year-on-year.
Leading retail chain Avenue Supermart, which owns and operates DMart, is widely expected to put up a solid show in the fourth quarter ended March 2024. The company will release its quarterly numbers on May 4.Net profit for the January-March 2024 period is seen growing 23% year-on-year, according to an average estimate of four brokerages. Meanwhile, revenue for the same period may jump 20% year-on-year.
The revenue growth will be led by strong store expansion and single-digit SSSG. DMart added 24 stores in the March quarter, which was higher than expected.
The company reported strong numbers in the preceding December quarter, too, with the consolidated net profit rising 17% to Rs 691 crore. Revenues, meanwhile, increased 17% to Rs 13,572.47 crore.
Here's what to expect from DMart's Q4
Axis Securities
Consolidated revenue is expected to grow at 20% year-on-year (19% 4-Year CAGR) on the back of store expansion and single- digit SSSG. EBITDA margins may expand marginally as the brokerage expects slight recovery in GM&A sales.Kotak Equities
The brokerage model consolidated revenue growth of 20.1% year-on-year in 4Q (company update indicated 19.9% year-on-year standalone revenue growth) driven by addition of 24 stores and single-digit SSSG. The firm notes that store addition was higher than expected, taking the net store count to 41 in FY2024.Consolidated GM of 14.1% (up 10 bps yoy) and EBITDA margin of 7.3% are expected. The brokerage has baked in some recovery in sales of GM&A. Gross margin is down 80 bps QoQ due to unfavorable seasonality.
Nuvama
The brokerage expects Avenue Supermarts (DMart) to report 18% year-on-year revenue growth (Q3FY24: 17%). DMart opened a total of 24 stores in Q4FY4, which is a positive surprise. On productivity, the firm builds in a revenue per sq ft increase of 5% year-on-year. DMart did highlight that the trend on General Merchandise and Apparel (GM&A) showed improvement post Diwali.Hence, the brokerage is expecting a 40 basis points year-on-year improvement in gross margins to 13.8%. Overall, it expects EBITDA margins to improve 20 basis points year-on-year to 7.8%. PAT is expected to increase 20% YoY.
Motilal Oswal
Consolidated revenue is expected to grow 20% year-on-year. DMart added 24 stores in 4QFY24, taking its total store count to 365. Standalone revenue per sq ft grew 5% year-on-year to Rs 33,450. The brokerage expects PAT to grow 28.5% year-on-year.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
Source: Stocks-Markets-Economic Times
