By Kosaku Narioka
Avenue Supermarts Ltd.'s first-quarter net profit fell 88% on year, as the Covid-19 pandemic disrupted its operations and weighed on nonessential, higher-margin sales, the operator of DMart Indian supermarket said Saturday.
Net profit for the quarter ended June 30 fell to 400.9 million rupees ($5.33 million) from INR3.23 billion a year earlier, it said. On a stand-alone basis, net profit was INR495.6 million, missing the estimate for a INR768 million profit in a FactSet poll of analysts.
The group's first-quarter revenue fell 33% to INR38.83 billion from INR58.15 billion a year earlier.
Avenue Supermarts Chief Executive Neville Noronha said the pandemic and ensuing restrictions had a significant negative impact on its operational and financial performance.
The company said discretionary spending remains under pressure, weighing on gross margins.
The after-tax profit margin was 1.0% in its first quarter, down from 5.5% from a year earlier.
The DMart store operator said it had recovered up to 80% or more of pre-pandemic sales in most stores where they are allowed to operate unhindered. However, operations remain inconsistent across cities due to lockdown enforced by local authorities in some places and others only allowing sale of essential products, it said.
Write to Kosaku Narioka at email@example.com
(END) Dow Jones Newswires
July 12, 2020 21:14 ET (01:14 GMT)Copyright (c) 2020 Dow Jones & Company, Inc.