Avenue Supermarts Ltd, the operating company of retail chain D-Mart, on Saturday reported a surge in its net profit in the April-June quarter in the current 2024-25 fiscal year (FY25). The company clocked a gain of 17.45 per cent in the consolidated net profit at Rs 773.68 crore during the first quarter of the ongoing fiscal year, against a net profit of Rs 658.71 crore logged in the corresponding quarter in the preceding 2023-24 fiscal year (FY24).
This growth in profit was attributed to an improvement in sales from general merchandise and apparels, the company informed via an official filing. During the quarter ended June 30, 2024, the revenue from operations of the company touched Rs 14,069.14 crore, gaining more than 18 per cent from Rs 11,865.44 crore logged in the same quarter a year earlier.
The company’s overall expenses in the quarter under review stood at Rs 13,056.61 crore, climbing 18.62 per cent on a year-on-year (YoY) basis. The total income of the firm increased by 18.54 per cent on a YoY basis to touch Rs 14,110.74 crore in the reviewing quarter.
Elaborating on the firm’s performance, Neville Noronha, CEO and MD, Avenue Supermarts, noted, “Contribution from general merchandise and apparel continued to improve during the quarter and this is reflected in the gross margin uptick. During the quarter, D-Mart opened six stores, taking its total count to 371 as on June 30, 2024. Operating costs have gone up due to continuing effort on improving service levels and building capability for the future.”
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The company is promoted by Radhakishan Damani and his family and the retail chain, D-Mart follows the Everyday low cost - Everyday low price (EDLC-EDLP) strategy. This strategy intends to procure goods at competitive prices with the help of operational and distribution efficiency, in turn, providing value for money for customers by selling at competitive prices, the firm stated.