In Short:
Avenue Supermarts, which operates the DMart chain of hypermarkets, saw a 17.5% increase in net profit and a 19% rise in revenue in the June quarter. The growth was mainly driven by groceries, staples, and general merchandise. Operating costs also increased as the company focused on improving service levels. Despite challenges in the retail sector, the company’s performance is gradually recovering.
DMart Has a Strong Start in FY25 with 17.5% Rise in Net Profit
Exciting news for all the DMart fans out there! The popular hypermarket chain Avenue Supermarts, known for its DMart stores, has started the financial year 2025 on a high note. The company reported a whopping 17.5% increase in net profit in the June quarter, along with a 19% rise in revenue.
Key Highlights:
- Consolidated net profit of ₹771.5 crore
- Revenue of ₹14069 crore
- 6 new stores opened during the quarter, totaling 371 stores
- 18% increase in EBITDA to ₹1221 crore
The growth was mainly driven by the performance of groceries and staples, along with an improvement in general merchandise and apparel. Despite higher operating costs, the company’s efforts to enhance service levels and build capabilities for the future paid off.
Challenges Faced:
The quarter saw an increase in raw material prices, prompting many FMCG companies to raise prices. In such a scenario, a discount retailer like Avenue Supermarts had to focus on efficient distribution and negotiating better prices with manufacturers to keep costs in check.
Despite subdued discretionary spending in the retail sector, Avenue Supermarts, being in the value retail category, has shown a gradual recovery in its performance. This positive trend is reflected in the sequential increase of 37% in net profit and 10.5% in revenue.
It’s exciting to see DMart thriving and adapting to the changing market dynamics. With their strong focus on value retail and customer service, Avenue Supermarts continues to set the bar high in the retail industry.
