By Kosaku Narioka

Avenue Supermarts Ltd.'s third-quarter net profit rose 16% from a year earlier thanks to better sales and a wider margin, the operator of the DMart supermarket chain said Saturday.

Net profit for the quarter ended Dec. 31 rose to 4.47 billion Indian rupees ($60.9 million) from INR3.84 billion a year earlier. That beat the estimate of INR4.23 billion from a poll of analysts from S&P Global Market Intelligence.

Third-quarter revenue increased 11% from a year earlier to INR75.42 billion.

The company's profit-after-tax margin improved to 5.9% from 5.6% a year earlier.

The Indian company said its overall sales and sales mix are trending very close to normal after the Covid-19 pandemic hit sales earlier in 2020, though apparel, laundry, footwear and travel items are taking more time to recover.

Fewer trips to stores and higher basket values continued to be the new norm, and the post Covid-19 environment is creating opportunities to offer online service in more cities, Avenue Supermarts said.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

01-10-21 2006ET