Avenue Supermarts share price fell over 6% in Monday's early session after the company posted a weak set of April-June quarter earnings. The company reported a 87.61% year-on-year (YoY) plunge in consolidated net profit at Rs 40.09 crore for the first quarter ended June 2020 impacted by COVID-19 and subsequent restrictions. In Q1 of last fiscal, the firm reported profit of Rs 323.09 crore.
Company's revenue fell 33.22% to Rs 3,883.2 crore in Q1 FY21 compared to Rs 5,814.6 crore in Q1 FY20.
Following the earning updates, shares of Avenue Supermarts opened lower at a loss of 4.83% and later fell further to an intraday low of Rs 2182, down 6.04% on BSE. The stock had earlier settled at Rs 2,322 on Friday. The retail stock has fallen after 2 days of consecutive gain.
Avenue Supermarts share price trades higher than 200-day moving averages but lower than 5, 20, 50 and 100-day moving averages. The stock price of Avenue Supermarts has fallen 3.98% in one week and 7% in one month.
"Covid-19 continued to spread across the country. The ensuing restrictions have had a significant impact on our operational and financial performance in the quarter. Our revenue, Ebitda and profit for the quarter were significantly lower as compared to the same quarter last year," said Chief Executive & MD Neville Noronha.
On its online business DMart Ready, the company said its sales in Mumbai have grown very well. With D-Mart online sales also growing well in Mumbai, the company said it is now attempting to scale it up. "Wherever stores were allowed to operate unhindered, we recovered to 80 per cent or more of pre-COVID sales in most stores," said Avenue Supermarts in a post earnings statement.
Expressing views on Q1 FY21 results of DMart, Amarjeet Maurya, AVP - Mid Caps, Angel Broking said,"1QFY21, ASL's (Avenue Supermarts Ltd) top-line de-grew by ~33% yoy to Rs3,883cr. Top-line was negatively impacted mainly due COVID-19 lockdown. Currently, the company's most of the stores operate at 80% of pre-covid sales level. However, discretionary consumption continues to be under pressure, especially in the Non-FMCG categories. On the operating front, the company reported margin contraction (down by 738bp YoY to 2.9%), primarily on account of lower sales. The reported net profit de-grew by ~88% YoY to Rs40cr due to lower sales and poor operating performance."