Billionaire’s firm led by India’s richest CEO clocks Rs 12308 crore quarterly revenue, but Citi remains ‘cautious’

Supermarket chain D-Mart parent Avenue Supermarts on Tuesday revealed that it had clocked a revenue of Rs 12,307.72 crore in the July-September period of the ongoing fiscal. In percentage terms, its revenue grew by 18.5 percent against revenue of Rs 10,384.66 crore in the corresponding quarter of last fiscal. 

Avenue Supermarts is promoted by retail king Radhakishan Damani, who is one of the wealthiest persons in the country with a net worth of over $17 billion. The company is led by Ignatius Navil Noronha, who is dubbed the richest professional CEO of India.

The announcement was followed by a surge in its stocks on BSE by as much as 3.82 per cent as it hit a high of Rs 3,864.90 apiece in the early trade on Wednesday, Zee Business reported. However, global brokerage firm Citi remains cautious and has said in its research report, that there are no indications of a throughput recovery from the Q2 update.  

D-Mart has been a significant wealth creator for Damani but has seen its share slump by over 13 percent in the last 12 months, the ZeeBiz report added. As per Citi, the firm believes that the revenue per square feet remains impacted by inferior product mix for the firm. It added that most of the nine new stores the company added in the quarter were in smaller towns. D-Mart’s total store count as of September 30, 2023 is 336.

City added that it remains “cautious at current valuation given risk around earnings”.