Avenue Supermarts Ltd, the parent company of the popular retail chain D-Mart, saw its shares tumble more than 9% during morning trading on Monday, following the release of its September quarter earnings, which failed to meet investor expectations.
In early trade, the stock plummeted by 9.46% to ₹4,139.95 on the National Stock Exchange (NSE) and by 9.37% to ₹4,143.60 on the Bombay Stock Exchange (BSE). This decline resulted in a substantial reduction in the company’s market capitalization, which fell by ₹27,900.18 crore to ₹2,69,637.75 crore.
In contrast, the broader market performed positively; the 30-share BSE Sensex gained 443.71 points, or 0.55%, reaching 81,825.07, while the NSE Nifty climbed 131.85 points, or 0.53%, to 25,096.10.
Earnings Overview
In a regulatory filing on Saturday, Avenue Supermarts reported a consolidated net profit of ₹659.44 crore for the second quarter ending September 2024, marking a 5.78% increase from ₹623.35 crore during the same period last year. Revenue from operations rose 14.41% to ₹14,444.50 crore, compared to ₹12,624.37 crore in the corresponding quarter of the previous fiscal year.
However, the company’s total expenses also saw a significant increase of 14.94%, amounting to ₹13,574.83 crore. Total income, including other income, surged 14.34% to ₹14,478.02 crore.
About D-Mart
Founded by Radhakishan Damani and his family, D-Mart operates a chain of retail stores that offer essential home and personal products across various states, including Maharashtra, Gujarat, Telangana, Andhra Pradesh, Karnataka, Tamil Nadu, Madhya Pradesh, Rajasthan, Punjab, NCR, Chhattisgarh, and Daman.
Upcoming Earnings Releases
Looking ahead, several companies are scheduled to announce their quarterly earnings on October 14, including Reliance Industries, HCL Technologies, and others. Market watchers will be keen to see how these results impact their respective stock prices and overall market sentiment.
Avenue Supermarts’ recent earnings report and the subsequent decline in its stock price highlight the volatility in the retail sector and investor reactions to financial performance. As the market continues to evolve, stakeholders will be watching closely for future developments in the company’s performance and strategy.
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