Key Q1 Outcomes – Avenue Supermart, HDFC Bank and Auto Sales

Avenue Supermarts

Avenue Supermarts, the operator of the hypermarket chain, DMart, reported a tremendous 132.3 percent year-on-year gain in standalone profit to Rs 115.13 crore on July 10, aided by a low base in the prior year period but harmed by restrictions on store hours owing to the second wave of Covid-19.

The company’s standalone revenue from operations was Rs 5,031.75 crore in Q1FY22, up 31.3 percent year on year, the company stated in a BSE filing.

“Q1 FY2021-22 saw a much stronger second wave of Covid-19 restrictions. We lost significantly more days or had higher restriction on number of hours of store operations compared to the same period last year,” said Neville Noronha, CEO & Managing Director.

“Despite lesser hours of operations this time, we had more customer footfalls than in the same period last year and this has translated into higher sales. One of the key reasons for this is that even though restrictions on operations were more severe, personal mobility was relatively less stringent than last time. Additionally, we also had 22 new stores that were opened post Q1 FY21,” he added.

Avenue Supermarts added four locations during the June 2021 quarter, bringing the total to 238.

On a consolidated basis, the company’s profit increased by 137.9 percent to Rs 95.37 crore in Q1FY22, while revenue increased 33.5 percent to Rs 5,183.12 crore.

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased 103.2 percent year over year to Rs 221.22 crore in the June 2021 quarter. Margin increased by 155 basis points to 4.39 percent year over year in the third quarter.

HDFC Bank

In an exchange filing, HDFC Bank disclosed that its advances were around Rs 11,47,500 crores as of June 30, 2021, an increase of nearly 14.4 percent over Rs 10,03,300 crores as of June 30, 2020. Additionally, the Bank forecasted a 1.3 percent increase in revenue to Rs 11,32,800 crores by March 31, 2021.

Among loan categories, retail loans increased by around 9.0 percent over June 30, 2020 and decreased by approximately 1% over March 31, 2021. Additionally, commercial and rural banking loans increased by approximately 25% between June 30, 2020 and March 31, 2021.

Deposits also increased to approximately Rs 13,46,000 crores as of June 30, 2021, an increase of approximately 13.2 percent over Rs 11,89,400 crores as of June 30, 2020, according to the filing.

Retail deposits increased by approximately 16.5 percent over June 30, 2020 and by approximately 3.5 percent over March 31, 2021, while wholesale deposits were unchanged over June 30, 2020 and decreased by approximately 10% over March 31, 2021.

Meanwhile, deposits in Current Account Savings Accounts (CASAs) increased by 28.2 percent and totaled around Rs 6,12,000 crores by June 30, 2021. As of June 30, 2021, the Bank’s CASA ratio was approximately 45 percent, up from 40.1 percent in June 30, 2020 and 46.1 percent in March 31, 2021.

Car Sales

In June, India’s car sales increased by 23% to 1.21 million units, owing to the reopening of showrooms in all states except those in the south.

According to figures released by the Federation of Automobile Dealers Association, passenger vehicle sales increased 43 percent to 184,134 units in June from the same month last year (FADA).

There was no data available for four markets – Andhra Pradesh, Madhya Pradesh, Lakshadweep, and Telangana. Retail sales are the vehicles that are registered or the vehicles that are actually sold to clients.

FADA President Vinkesh Gulati said: “The month of June witnessed re-opening for most of the states except the ones in South. Due to this, the industry witnessed a high pent-up demand. While all the categories were in green, PVs maintain good demand as customers continued to show keenness in vehicles for observing social distancing and safety of their families.”

In June, two-wheeler sales increased 17% to 930,324 units, compared to the same month last year. Commercial vehicle (CV) volumes also increased significantly in June. CV sales increased 236% to 35700 units in June. June tractor sales increased 14% to 52,261 units.

“Two-wheeler category though in green has witnessed a softer recovery as the rural market is taking time to get back from post COVID stress. Commercial vehicle segment has seen staggering growth over last year, though on a very low base as there were product shortages due to BS-6 transition,” FADA stated.

According to FADA’s outlook, the positive momentum from June has continued into July, and with southern India’s opening up, there are prospects of further demand growth. However, the persistent worldwide semiconductor shortage is generating a demand-supply mismatch, while new viral mutations and a forecast for a third wave in August are weighing on mood.

Following the majority of companies’ resumption of production following a slowdown in May, the average inventory for photovoltaics ranged between 30 and 35 days. According to FADA, the period for two-wheelers was between 20 and 25 days.

Image from https://unsplash.com/@rick081502_

Finvestor Social Media

Krishna Rath is a SEBI Registered Investment Adviser, and since 2015 has been educating netizens on investments and insurance. Krishna is a fee only SEBI RIA and is Odisha's first SEBI RIA. With background in IT, Krishna is changing the advisory space with new innovations in AdvisoryTech.

Leave a Reply

Your email address will not be published. Required fields are marked *