DMart Shares Plummet 9% Post Q2 Disappointment

14 Oct 2024 , 12:24 PM

In an early trading session on Monday, shares of DMart, which is owned by Avenue Supermarts, fell 9.3% to a low of Rs 4,143.60 on the BSE. The company’s Q2 earnings fell short of expectations from the markets.

As of 12:14 pm, the stock was down 8.26% trading at ₹4,192.60.

The growing influence of the rapid commerce category hindered the company’s Q2 profit, which saw an 8% YoY increase.

Nonetheless, the reported quarter’s profit after tax dropped by more than 12% from the April–June quarter’s Rs 812.45 crore.

Operational revenue was Rs 14,050.32 crore, up 14% from the Rs 12,307.72 crore recorded during the same period last year.

The drop is due to pressure from online competition on large urban retailers, as well as LFL moderation and growing costs impacting Q2 performance. Operating margins are being impacted by increased investments, and in Q2, the fast commerce effect has been more pronounced than anticipated. Despite recent dips, this segment’s sustained expansion could have an impact on stock performance.

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