lower interest burden helped Avenue Supermarts, that runs the D-Mart chain of supermarkets, to report a healthy 47.6 per cent jump in net profit for the June quarter at Rs 174.77 crore. The company, which was not a publicly traded firm in the year-ago period, had a net profit of Rs 118.44 crore.
It hit the markets with a blockbuster initial public offering (IPO) in March which was oversubscribed over 100 times and even a better listing with the stock gaining close 120 per cent on debut. The company raised over over Rs 1,870 crore through the share sale. Its standalone income in the quarter rose to Rs 3,598.13 crore, a growth of 35.7 per cent from Rs 2,652.39 crore a year ago. The company attributed the healthy set of number to lower finance cost.
“Profits are in line with expectation, and was driven mainly by lower interest cost burden owing to the IPO money that came in after the listing in March,” Avenue Supermarts CEO and MD Neville Noronha told PTI in a post-earnings concall. He said the firm has transitioned into the GST regime well with minimal migration challenges. “While supplies from certain vendors could see some short-term disruptions, we are optimistic that GST will create excellent opportunities for small and medium businesses to become preferred suppliers to organised retail in the near-to long-term.”