Subdued and “lower-than-expected” Q3FY23 performance led to Avenue Supermarts, which owns and operates D-Mart stores, hit an over 6-month low, falling 6% to Rs.3627. Usually, such brokerage led sell-offs last for the immediate short term.
The stock slipped after it reported a 7% (YoY) decline in consolidated net profit at Rs.590 crore on a 25% increased total revenue of Rs.11,569 crore. Analysts had predicted a net profit of Rs.650 crore and because the actual came in so way off, there is a knee-jerk reaction of a sell-off.
Its EBITDA for the quarter was up 11% at Rs.965 crore while margins declined from 9.4% to 8.3%.