Avenue Supermarts share price: Avenue Supermarts slumps after overall decline in gross margins in the third quarter
Avenue Supermarts on Saturday announced a 23.62% increase in its consolidated net profit to Rs 552.53 crore for the third quarter ended December 31. The company posted a net profit of Rs 446.95 crore in the same quarter a year ago.
Overall gross margins, however, were lower due to the deterioration in the sales mix, senior management said, adding that the general merchandise and apparel business consistently saw a relatively smaller contribution to sales while core and core products. consumer goods were doing better.
The company’s meter fell to a low of Rs 4,658.80 against Rs 4,731.35 at the previous close on the National Stock Exchange.
“Inflation and fewer exit opportunities have a negative impact on some categories more than others. We see higher inflation as an opportunity to make our purchasing more efficient, our assortment sharper and to continue to keep our costs down. low, ”CEO and CEO Neville Noronha said. cited as saying in reports.
“Given the current wave of Covid, our sales and footfall will depend on local regulations. We continue to take every precaution to ensure that every buyer, employee and partner operates in a safe environment. ”
Total consolidated revenue for the quarter increased 22.22% year-on-year to Rs 9,218 crore from Rs 7,542 crore in the quarter last year.
The PAT margin for the quarter improved to 6%, up 10 basis points from 5.9% in the same quarter last year, the company said on Saturday in a BSE filing .