Ignatius Navil Noronha, the chief executive officer of Avenue Supermarts Ltd, which runs DMart retail stores, has seen his wealth surge to more than a billion dollars as the shares of the retail firm jumped an astonishing 113% this year.
With this, Noronha, aged 47, has become India’s richest professional manager with his net worth surging past ₹7,744 crore.
Tracking Stock
The stock hit a fresh record high of ₹5,899 on BSE and gained as much as 10.7% in intraday with its market cap surging past ₹3.54 trillion.
At 10 am, the scrip was up 2% to ₹5,431 a share. The stock trading higher for seven consecutive sessions and advanced nearly 40% in this period.
The stock was listed on 21 March 2017 with an issue price of ₹299 a share. Since then, the scrip surged over 1,800% from its issue price.
Noronha has 13.13 million shares, or 2.03% stake, in the company.
Company’s Financial
On Saturday, the firm reported earnings that were better than expected. Revenues grew by 46.6% year-on-year. Gross margins expanded by 25 basis points y-o-y to 14.3%.
Ebitda (Earning before interest, tax, depreciation and amortization) grew by 106.3% to ₹670 crore. Margins expanded by 260bps to 8.8% aided by lower other expenses (230bps). PAT grew by 113.2%.
Background of Noronha
Born and raised in Mumbai, Noronha completed his management degree from the Narsee Monjee Institute of Management Studies.
Before joining Dmart, Noronha was working with fast-moving consumer goods giant Hindustan Unilever. Avenue Supermarts founder Radhakishnan Damani hired him in 2004 as a head of business. He took over as a CEO in 2007.
About Dmart
DMart continues to offer the highest discount across most categories, in turn gaining loyalty, a key factor for driving footfall.
The firm targets lower-middle, middle, and aspiring upper-middle-income consumers for whom value for money plays an important role.
The firm faces the risk of greater competition from JioMart, Flipkart and Amazon, but analysts believe the firm is well placed in the domestic retail industry given its strong execution capabilities, disciplined low prices and low costs strategy, lower cost of operation, and a streamlined distribution network, which help DMart to penetrate new markets.
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