Changes for page Avenue Supermarts Ltd

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--= Overview =
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++Overview
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++
  The supermarket chain of DMart stores is owned and operated by Avenue Supermarts Ltd. (NSE:DMART). The company has its headquarters in Mumbai.
--DMart is a one-stop supermarket chain that aims to offer customers a wide range of basic home and personal products under one roof. Each DMart store stocks home utility products - including food, toiletries, beauty products, garments, kitchenware, bed and bath linen, home appliances and more - available at competitive prices that its customers appreciate. The company's core objective is to offer customers good products at great value.{{footnote}}https://www.dmartindia.com/about-us{{/footnote}}
++DMart is a one-stop supermarket chain that aims to offer customers a wide range of basic home and personal products under one roof. Each DMart store stocks home utility products - including food, toiletries, beauty products, garments, kitchenware, bed and bath linen, home appliances and more - available at competitive prices that its customers appreciate. The company's core objective is to offer customers good products at great value.
++
++[[https:~~/~~/www.dmartindia.com/about-us>>url:https://www.dmartindia.com/about-us]]
++
++
  DMart was started by Mr. Radhakishan Damani and his family to address the growing needs of the Indian family. From the launch of its first store in Powai in 2002, DMart today has a well-established presence in 216 locations across Maharashtra, Gujarat, Andhra Pradesh, Madhya Pradesh, Karnataka, Telangana, Chhattisgarh, NCR, Tamil Nadu, Punjab and Rajasthan. With its mission to be the lowest priced retailer in the regions the company operate, its business continues to grow with new locations planned in more cities.
--= Industry Overview =
--Over the years, retailing in India has been one of the most dynamic and fast-paced industries, which has travelled through different phases. In 2019, India‘s GDP is estimated at `141 trillion, of which private consumption constituted 57%. Retail sectors forms around ~~80% of private consumption at constant prices. India‘s GDP growth will therefore translate to an increase in the merchandise retail market, from `34 trillion in Fiscal 2014 to `66 trillion in Fiscal 2020.{{footnote}}https://api.dmartindia.com/corporate/content/file/v1/clW2bTVf5wyM4s2CKyU2KLRf/Annual%20Report%202019%20-20%20and%20AGM%20Notice{{/footnote}}
++Industry Overview
++
++Over the years, retailing in India has been one of the most dynamic and fast-paced industries, which has travelled through different phases. In 2019, India‘s GDP is estimated at `141 trillion, of which private consumption constituted 57%. Retail sectors forms around ~~80% of private consumption at constant prices. India‘s GDP growth will therefore translate to an increase in the merchandise retail market, from `34 trillion in Fiscal 2014 to `66 trillion in Fiscal 2020. (Source: Crisil Research)
++
++[[https:~~/~~/api.dmartindia.com/corporate/content/file/v1/clW2bTVf5wyM4s2CKyU2KLRf/Annual%20Report%202019%20-20%20and%20AGM%20Notice>>url:https://api.dmartindia.com/corporate/content/file/v1/clW2bTVf5wyM4s2CKyU2KLRf/Annual%20Report%202019%20-20%20and%20AGM%20Notice]]
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  Sector growth is primarily driven by rapid urbanisation, changing demographic profile, increasing middle-class disposable incomes, increased digitalisation and technology adoption, evolving preferences, brand awareness and rising discretionary spending. The rising e-commerce wave also significantly contributed to the overall growth of the sector.
  Organised Brick & Mortar retail accounted for ~~7.5% of total retail  market in Fiscal 2019. Overall, organised retail grew ~~21%  on-year in Fiscal 2019, with B&M retailers registering growth of ~~18% on-year.
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  Overall, the retail sector faces key threats in the form of economic headwinds such as GDP slowdown due to COVID-19, decreased rural spending and rising commodity prices as well as e-tailing, which have affected the growth of the brick and mortar businesses. Unexpected yet unavoidable situations such as the recent pandemic have also impacted the performance of the retail industry, as people remain indoors and mostly consume essential goods and services. Organisations serving in the industry, thus will need to remain agile and adaptable, to identify these threats and work towards their effective mitigation.
--= Business Overview =
++Business Overview
++
++
  Avenue Supermarts Limited (DMart) is a national supermarket chain, with a focus on value-retailing. The company offer a wide range of products with a focus on the Foods, Non-Foods (FMCG) and General Merchandise & Apparel product categories.
  The company launched its first store in 2002 in Mumbai, Maharashtra, and since then have grown to 214 stores with a retail business area of 7.8 million sq. ft. spread across Maharashtra (76 stores), Gujarat (37), Telangana (24), Karnataka (20), Andhra Pradesh (17), Madhya Pradesh (11), Tamil Nadu (10), Rajasthan (7), Chhattisgarh (5), Punjab (5), Daman (1), and NCR (1).
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  Over the years DMART has seen steady growth in the number of stores and consequently its retail business area.
--(% style="width:519px" %)
--|(% style="width:164px" %)**Financial Year**|(% style="width:109px" %)**No. of Stores**|(% style="width:243px" %)**Retail business area (in Mn sq. ft.)**
--|(% style="width:164px" %)FY 2019-20|(% style="width:109px" %)214|(% style="width:243px" %)7.8
--|(% style="width:164px" %)FY 2018-19|(% style="width:109px" %)176|(% style="width:243px" %)5.9
--|(% style="width:164px" %)FY 2017-18|(% style="width:109px" %)155|(% style="width:243px" %)4.9
--|(% style="width:164px" %)FY 2016-17|(% style="width:109px" %)131|(% style="width:243px" %)4.1
--|(% style="width:164px" %)FY 2015-16|(% style="width:109px" %)110|(% style="width:243px" %)3.3
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  The company's operations are ably supported by a network of distribution centres and packing centres. As of March 31, 2020 the company had 36 distribution centres and 7 packing centres.
  The company's total number of bill cuts have increased steadily. The company's total number of bill cuts was Rs 20.1 crores in FY2019-20 compared to Rs 17.2 crores during FY2018-19.
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  The company's annualised revenue from sales per retail business area sq. ft. (#) was Rs 32,879 in FY2019-20 and Rs 35,647 in FY2018-19.
--= Financial Highlights =
++Financial Highlights
++
  On standalone basis, the total income for FY 2020 was Rs 24,738.34 crore, which is 23.89 % higher over the previous year’s income of Rs 19,967.66 crore. The company's total income on consolidated basis for FY 2020 was Rs 24,930.19 crore as against Rs 20,052.87 crore during FY 2019.
  On standalone basis, the net profit after tax (PAT) for FY 2020 stood at Rs 1,349.89 crore as against previous year’s net profit of Rs 936.35 crore thereby recording a growth of 44.17%. The company's net profit after tax (PAT) on consolidated basis for FY 2020 amounted for Rs 1,300.98 crore as compared to Rs 902.46 crore in the previous year.
--= Recent developments =
--October 17, 2020: Avenue Supermarts Ltd. (ASL), declared its financial results for the quarter and half year ended September 30, 2020.{{footnote}}https://api.dmartindia.com/corporate/content/file/v1/4EPmqVJMZpg4xIm9M4ZswmFe/ASL%20-%20Financial%20Results%20for%20the%20Q2%20(FY%2021){{/footnote}}
++Recent developments
++October 17, 2020: Avenue Supermarts Ltd. (ASL), declared its financial results for the quarter and half year ended September 30, 2020.
++
++[[https:~~/~~/api.dmartindia.com/corporate/content/file/v1/4EPmqVJMZpg4xIm9M4ZswmFe/ASL%20-%20Financial%20Results%20for%20the%20Q2%20(FY%2021)>>url:https://api.dmartindia.com/corporate/content/file/v1/4EPmqVJMZpg4xIm9M4ZswmFe/ASL%20-%20Financial%20Results%20for%20the%20Q2%20(FY%2021)]]
++
  Total Revenue for the quarter ended September 30, 2020 stood at Rs. 5,306 crore, as compared to Rs. 5,991 crore in the same period last year. Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) in Q2FY21 stood at Rs. 330 crore, as compared to Rs. 517 crore in the corresponding quarter of last year. EBITDA margin stood at 6.2% in Q2FY21 as compared to 8.6% in Q2FY20.
  Net Profit stood at Rs. 199 crore for Q2 FY21, as compared to Rs. 323 crore in the corresponding quarter of last year. PAT margin stood at 3.7% in Q2FY21 as compared to 5.4% in Q2FY20
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  Basic Earnings per share (EPS) for H1FY21 stood at Rs. 3.68, as compared with Rs. 10.35 for H1FY20.
--**DMart (Brick and Mortar) Business Overview**
++DMart (Brick and Mortar) Business Overview
  Lockdown restrictions due to Covid-19 were further eased during this quarter. Within the continued uncertainty from Covid-19, its business has seen improvement and it continues to gradually progress towards prepandemic levels. Month-on-Month sales have improved during this quarter – August was better than July and September was better than August. The highlight being that footfalls continue to be significantly lower than preCovid levels but basket values are significantly higher than pre-Covid levels. Both these data points are trending towards pre-Covid levels. Footfalls are getting better and basket values are reducing month over month.
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  FMCG and staples demand remains robust. September 2020 sales of all stores exceeded September 2019 sales for FMCG and Staples while General Merchandise and Garments did lesser sales in the same period. However, discretionary consumption has seen significant improvement over Q1FY21. DMART was at 22.7% revenue contribution from General Merchandise and Apparel business in Q2FY21 as compared to the usual 27.3% contribution for the year. The company couldn’t sell this category of products for nearly 2 months of Q1FY21 due to regulatory restrictions and once permitted the company did insignificant sales due to tightening of discretionary spend by consumers. Almost all of the shopping in Q1FY21 was need based and essential in nature. In light of that, Q2FY21 sales contribution from General Merchandise and Apparel is encouraging.
--**New Stores Opening**
++New Stores Opening
  The company continue to focus on new store openings and have opened six new DMart stores during the quarter. DMART has closed two of its Mumbai stores for customers and converted them into fulfillment centers (FC) for its ECommerce business. One each in Mira Road and Kalyan. Both these locations have an alternate DMart store within 4 kms.
--= References =
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++References