Q1 results today: DMart among 14 companies to announce quarterly earnings

T services companies like TCS and HCL Tech kickstarted the first quarter earnings season in the week gone by posting better than expected results. Today, about 14 companies will release their June quarter results including Avenue Supermarts, which operates DMart.

Other results to watch out for include Bhansali Engineering, Excel Realty N Infra, Geojit Financial Services, Hathway Bhawani Cabletel, J Taparia Projects, Kernex Microsystems, K&R Rail Engineering, Mishtann Foods among others.

DMart Q1 expectations

Leading retail chain Avenue Supermart is expected to post a healthy revenue growth in the first quarter on the back of store expansion and single digit SSSG. The total number of stores at the end of June quarter stood at 371.Net profit for the April-June 2024 period is seen growing 19% year-on-year, according to an average estimate of four brokerages. Meanwhile, revenue for the same period is likely to jump 19% year-on-year.

The company reported strong numbers in the preceding March quarter too with the consolidated net profit rising 22% to Rs 563 crore. Revenues, meanwhile, increased 20% to Rs 12,727 crore.

Antique Stock Broking sees DMart’s revenue growing by 18% year-on-year, driven by higher inflation and store expansion.

“On a five-year CAGR basis (pre-Covid-19 levels), revenue is expected to grow at 19%. We expect a marginal improvement in the sale of general merchandise as consumer sentiment improves. We expect DMart’s EBITDA margin to improve marginally over last year’s level due to operating leverage,” the brokerage said.

Kotak Equities, on the other hand, is pricing in a consolidated revenue growth of 18.8% year-on-year in 1QFY25 (company update indicated 18.4% year-on-year standalone revenue growth) driven by addition of six stores and single-digit SSSG.

“We expect consolidated GM of 15.4% (up 20 bps year-on-year) and EBITDA margin of 8.7%. We expect gross margin to expand by 95 bps and EBITDA margin to expand by 130 bps sequentially driven by favorable seasonality,” it said.

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