Avenue Supermarts, the company behind India’s popular DMart retail chain, saw a significant uptick in fourth-quarter profit, driven by a surge in foot traffic at its stores offering groceries and apparel at competitive prices. The retailer, renowned for its attractive discounts across various product categories, reported a consolidated net profit of 5.63 billion rupees ($67.5 million) for the quarter ending March 31, marking a robust 22.4% increase from the previous year’s 4.60 billion rupees.

Consolidated sales also experienced a healthy growth of 20% in the fourth quarter, surpassing the 17.3% growth seen in the prior quarter, contributing positively to the company’s bottom line. Avenue Supermarts’ provision of affordable products resonated well with consumers amid concerns over inflation, driving footfall and sales.

The company, headquartered in Mumbai, saw its earnings before interest, taxes, depreciation, and amortization (EBITDA) margin improve to 7.4% in the quarter, up slightly from 7.3% in the corresponding period last year. This enhancement in margin underscores the efficiency and profitability of its operations.

DMart’s consolidated revenue climbed to 127.27 billion rupees in the fourth quarter, compared to 105.94 billion rupees in the same quarter of the previous year, indicating a robust growth trajectory.

Expanding its footprint across India, DMart opened 24 new stores during the fourth quarter, bringing its total store count to 365 as of March 31. This strategic expansion reflects the company’s commitment to reaching a wider consumer base and tapping into new markets.

Investor sentiment remained positive, with shares of Avenue Supermarts registering an approximate 11% increase during the March quarter, signaling confidence in the company’s growth prospects. On Friday, the stock closed marginally higher by 0.2%, reflecting stable market performance.

Overall, Avenue Supermarts’ strong financial performance, coupled with its expansion initiatives and consumer-centric approach, positions the company well for sustained growth in India’s competitive retail landscape.