Avenue Supermarts reported a 2% rise in profit in the first quarter of the financial year 2023-24. The company’s net profit stood at Rs 659 crore for the quarter ended June 30, 2023, as compared to Rs 645 crore in the same quarter of the previous year. Revenue from operations for the quarter rose 18% to Rs 11,584.44 crore.
The company’s management attributed the profit growth to strong sales growth, improved operating margins, and lower interest costs. Sales growth was driven by a combination of factors, including increased customer traffic, higher average ticket size, and expansion of the store network. Operating margins improved due to better cost control measures. Interest costs declined due to lower debt levels.
Avenue Supermarts is one of the leading retail chains in India. The company operates over 250 stores across the country. It is known for its wide range of products, competitive prices, and convenient shopping experience.
The company’s management is confident of maintaining the current growth momentum in the coming quarters. They expect sales to grow in the range of 15-20% in the current financial year. Profit growth is also expected to be in the double digits.
The company’s stock price has been on an upward trend in recent months. It is currently trading at around Rs 3,800 per share. Analysts believe that the stock is undervalued and has the potential to deliver significant returns in the long term.