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Avenue Supermarts Q4: DMart Operator Logs 2.6 Per Cent Jump In Net Profit

The firm’s total revenue for the Q4FY25 stood at Rs 14,462 crore, jumping 16.7 per cent in comparison to Rs 12,393 crore clocked in the January-March quarter in FY24.

DMart operator, Avenue Supermarts Ltd, reported its financial results for the January-March quarter in 2024-25 fiscal year (FY25) on Saturday. The firm, founded by Radhakishan Damani, clocked a standalone net profit of Rs 620 crore in the fourth quarter of FY25, climbing 2.6 per cent from Rs 604 crore logged in the quarter ended March 31, 2024. 

The firm’s total revenue for the quarter under review stood at Rs 14,462 crore, jumping 16.7 per cent in comparison to Rs 12,393 crore clocked in the January-March quarter in the preceding 2023-24 fiscal year (FY24).

Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) touched Rs 981 crore in Q4FY25, while the metric recorded Rs 940 crore in the corresponding quarter a year earlier, the firm said via an official filing with the exchanges. 

The Basic Earnings per Share (EPS) climbed to Rs 9.52 in the period under review, as compared to Rs 9.28 registered in Q4FY24.

Also Read : Kotak Mahindra Bank Q4: Lender Sees 14 Per Cent Decline In Net Profit, Asset Quality Tanks Slightly

Increase In Customer Traffic And Performance Overview

Explaining the steady performance clocked by the firm, Neville Noronha, CEO and MD, Avenue Supermarts Ltd, said that the surge was primarily due to an increase in the footfalls. “Three things have happened during this quarter – (I) increased competitive intensity in the FMCG space has impacted our gross margins; (II) surge in wages of entry level positions due to demand / supply mismatch of skilled workforce; and (III) continued investments in improving our service levels with respect to faster turnarounds on availability, checkouts and future store openings. We also had a larger number of store openings during this quarter,” the executive added.

Noronha further said that Anshul Asawa joined the company as CEO Designate in mid-March and should be taking over all the operational aspects of the retail business in the next 4-5 months.

“This will allow me to dedicate more time on store-opening acceleration, e-commerce capacity build-up and other non-retail aspects of the business. Overall business continues to be resilient in metro towns. However, we are doing significantly better in nonmetro towns. We are also having relatively better like-for-like growth in metro towns which have significantly lesser DMart Stores density,” he noted.

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