AVENUE SUPERMARTS LTD

(DMART | BSE CODE: 540376)

INR 3501.75
52 Week (High – INR 1,672.45 & Low – 1,218.05)

About the Company

Avenue Supermarts Limited, is an Indian retail corporation that operates a chain of hypermarkets in India.It was founded by Radhakishan Damani in 2002 when its first store
was opened in Powai, Mumbai. As of December 2022, it has 306 stores across 14 states in India. The company has its headquarters in Mumbai. As of 31 March 2022, DMart
had a total of 10,713 permanent employees and 58,597 employees hired on contractual basis.

Financial Summary
Revenue from Operations (in Crs.) Net Profit (in Crs.) Earnings Per Share (in Rs.)
42,840 45,016 36.7
44,651
30,976
24,870 44,286 23.0
24,143 20.1
43,921 17.0

Mar-20 Mar-21 Mar-22 Mar-23 Mar-20 Mar-21 Mar-22 Mar-23 Mar-20 Mar-21 Mar-22 Mar-23

Asset Turnover Ratio Return on Equity Return on Capital Employed

2.61x 2.55x
15.61% 15.99%
2.13x 15.83%
1.88x 14.88%
11.54%
9.45% 10.90%
8.75%

Mar-20 Mar-21 Mar-22 Mar-23

Mar-20 Mar-21 Mar-22 Mar-23 Mar-20 Mar-21 Mar-22 Mar-23

Recent Updates
• D-Mart's Q4 net up 7.8% to Rs 460 cr, revenue rises 20.5% to Rs 10,594 cr
• Its revenue from operations was up 20.57 per cent to Rs 10,594.11 crore during the quarter under review as against Rs 8,786.45 crore in the corresponding
quarter last fiscal.
• Avenue Supermarts' total expenses were at Rs 10,002.21 crore, up 21.82 per cent in Q4/FY 23, as against Rs 8,210.13 crore in the corresponding quarter.
• The total number of D-Mart stores as of March 31, 2023, stood at 324.
• Over the last three years, DMART has been adding larger stores to their retail chain. With these larger stores, the company expects to see an increase in store
 DUPONT ANALYSIS OF ROE , ROA & ROCE
RETURN ON EQUITY (ROE)
Mar-20 Mar-21 Mar-22 Mar-23
NET PROFIT 1,301.0 1,099.4 1,492.4 2,378.3
AVERAGE SHAREHOLDERS EQUITY 8,333.6 11,631.7 12,930.7 14,878.2
RETURN ON EQUITY 15.61% 9.45% 11.54% 15.99%

ROE - DUPONT EQUATION

Mar-20 Mar-21 Mar-22 Mar-23
NET PROFIT ₹ 1,300.98 ₹ 1,099.43 ₹ 1,492.40 ₹ 2,378.34
REVENUE ₹ 24,870.20 ₹ 24,143.06 ₹ 30,976.27 ₹ 42,839.56
NET PROFIT MARGIN (A) 5.23% 4.55% 4.82% 5.55%

REVENUE ₹ 24,870.20 ₹ 24,143.06 ₹ 30,976.27 ₹ 42,839.56

AVERAGE TOTAL ASSETS ₹ 9,540.83 ₹ 12,865.61 ₹ 14,563.02 ₹ 16,788.64
ASSET TURNOVER RATIO (B) 2.61x 1.88x 2.13x 2.55x

AVERAGE TOTAL ASSETS ₹ 9,540.83 ₹ 12,865.61 ₹ 14,563.02 ₹ 16,788.64

AVERAGE SHAREHOLDERS EQUITY ₹ 8,333.60 ₹ 11,631.73 ₹ 12,930.68 ₹ 14,878.17
EQUITY MULTIPLIER (C) 1.14x 1.11x 1.13x 1.13x

RETURN ON EQUITY (A*B*C) 15.61% 9.45% 11.54% 15.99%

 RETURN ON ASSETS (ROA)
Mar-20 Mar-21 Mar-22 Mar-23
NET PROFIT ₹ 1,300.98 ₹ 1,099.43 ₹ 1,492.40 ₹ 2,378.34
AVERAGE TOTAL ASSETS ₹ 9,540.83 ₹ 12,865.61 ₹ 14,563.02 ₹ 16,788.64
RETURN ON EQUITY 13.64% 8.55% 10.25% 14.17%

ROA - DUPONT EQUATION

Mar-20 Mar-21 Mar-22 Mar-23
NET PROFIT ₹ 1,300.98 ₹ 1,099.43 ₹ 1,492.40 ₹ 2,378.34
REVENUE ₹ 24,870.20 ₹ 24,143.06 ₹ 30,976.27 ₹ 42,839.56
NET PROFIT MARGIN (A) 5.23% 4.55% 4.82% 5.55%

REVENUE ₹ 24,870.20 ₹ 24,143.06 ₹ 30,976.27 ₹ 42,839.56

AVERAGE TOTAL ASSETS ₹ 9,540.83 ₹ 12,865.61 ₹ 14,563.02 ₹ 16,788.64
ASSET TURNOVER RATIO (B) 2.61x 1.88x 2.13x 2.55x

RETURN ON ASSEST (A*B) 13.64% 8.55% 10.25% 14.17%

RETURN ON CAPITAL EMPLOYED (ROCE)

Mar-20 Mar-21 Mar-22 Mar-23
NOPAT ₹ 1,307.79 ₹ 986.20 ₹ 1,449.13 ₹ 2,330.21
AVERAGE CAPITAL EMPLOYED ₹ 8,788.99 ₹ 11,270.41 ₹ 13,298.24 ₹ 14,717.87
RETURN ON CAPITAL EMPLOYED 14.88% 8.75% 10.90% 15.83%

ROCE - DUPONT EQUATION

Mar-20 Mar-21 Mar-22 Mar-23
NOPAT ₹ 1,307.79 ₹ 986.20 ₹ 1,449.13 ₹ 2,330.21
REVENUE ₹ 24,870.20 ₹ 24,143.06 ₹ 30,976.27 ₹ 42,839.56
NOPAT MARGIN (A) 5.26% 4.08% 4.68% 5.44%

REVENUE ₹ 24,870.20 ₹ 24,143.06 ₹ 30,976.27 ₹ 42,839.56

AVERAGE CAPITAL EMPLOYED ₹ 8,788.99 ₹ 11,270.41 ₹ 13,298.24 ₹ 14,717.87
CAPITAL TURNOVER RATIO (B) 2.83 2.14 2.33 2.91

RETURN ON CAPITAL EMPLOYED (A*B) 14.88% 8.75% 10.90% 15.83%

DUPONT Summary
• ROE of Avenue Supermarts has increased to 15.99% i.e their pre-covid levels as of 31st March 2023 and was able to maintain their Net margins. Asset efficiency and
financial leverage of the company is constantly maintained throughout the period.
• The company is able to maintain its ROA to 14.17% which was decreased to 8.55% at times of Covid. The reason for increasing ROA after covid is due to their Net profit
Margins that margin reflects the company's ability to generate profits from its revenue.The higher ROA indicates better utilization of assets and higher profitability.
• The company is able to generate good returns on thier capital deployed. ROCE has increased from 14.88% in FY20 to 15.83% in FY23. Overall, the company's ROCE has
shown fluctuations over the years, but it has generally been on an upward trend, indicating improved efficiency and profitability in recent years.