Analysts tracking the company said it will report 48-52 per cent sequential and 45-47 per cent annual growth in net revenue. On the other hand sequential profit growth may be in the range of 203-391 per cent and yearly growth of 66-136 per cent.
“Ebitda will see strong growth on the back of longer hours of operations, higher sales of general merchandise. Gross and Ebitda margin is likely to be expand both YoY/QoQ owing to operating leverage, easing of lockdown restriction, normalization of store operating timings, higher sale of non-essential products,” said analysts at Axis Securities.
According to them, revenues of the company will witness growth of 47 per cent YoY as per company’s business update and eight new store additions during the July-September period.
Even in the last quarter, the company’s performance was spectacular. Avenue Supermarts’ net profit jumped 132.3 per cent on a year-on-year basis to Rs 115 crore for the quarter ended June. Its total revenues rose 31.3 per cent on-year.
The company suffered heavily due to the lockdown in place to combat Covid-19 pandemic. Its stores were shut, and thus it had to accelerate its online business. But as the virus cases have come down drastically, its business operations are also likely to improve.
The company’s revenue growth for Q2FY22 stands at driven by stronger footfall recovery as lockdown restrictions eased during the quarter.
“Gross margin is likely to be under pressure due to slower pick-up in sales of margin accretive general merchandise and apparels. Ebitda margin to expand by 97 bps to 7 per cent,” said analysts at IDBI Capital.
Yes Securities said the company’s stable margins will drive profitability growth. Its 2-year revenue CAGR at about 15 per cent is quite robust, the broker added.
Analysts said among the key things to watch for will be store addition rate and gross margin trend.