DMart share price falls on quarterly profit miss, margin drop
NEW DELHI: Avenue Supermarts Ltd, the company behind the DMart retail chain in India, saw a decline of 3.5% in its share price on Monday following the release of its fourth-quarter earnings report. The company's profit for the quarter fell short of estimates, and its core profit margin contracted.According to the company's statement on Saturday, the Earnings before interest, taxes, depreciation, and amortization (EBITDA) margin decreased to 7.3% in the reported quarter, compared to 8.4% in the same period the previous year.Although DMart's profit increased by nearly 8% year-on-year, reaching 4.60 billion rupees, it fell below analysts' expectations of 5.21 billion rupees, based on Refinitiv IBES data.The decline in share price can be attributed to the market's response to the company's lower-than-anticipated profit and the contraction of its core profit margin. Investors had expected better performance, and the results fell short of their expectations.DMart, known for its retail operations and popular supermarket chain, will need to address the factors that led to the margin contraction and work towards improving its profitability. The company will likely face increased scrutiny from investors and analysts as they assess its future prospects based on these results.It remains to be seen how Avenue Supermarts Ltd will respond to these challenges and implement strategies to regain market confidence and improve its financial performance in the coming quarters.(With inputs from agencies)
Monday, May 15, 2023 at 4:48 am