Avenue Supermarts Limited, the parent company of the popular DMart chain of supermarkets, reported robust financial performance for the first quarter (Q1) of FY 2025. Both net profit and revenue surged, reflecting continued growth for the retail giant.
Key Highlights:
- Net Profit: Net profit for Q1 FY 2025 climbed 17.5% year-on-year (YoY) to ₹773.8 crore, compared to ₹658.8 crore in the corresponding quarter of the previous fiscal year.
- Revenue: Revenue jumped 18.6% YoY, reaching ₹14,069.1 crore in Q1 FY 2025, up from ₹11,865.4 crore in Q1 FY 2024.
- EBITDA: Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) witnessed an 18% growth YoY, reaching ₹1,221.3 crore in Q1 FY 2025, compared to ₹1,035.3 crore in Q1 FY 2024.
- EBITDA Margin: EBITDA margin dipped slightly, settling at 8.68% in Q1 FY 2025 compared to 8.73% in Q1 FY 2024.
Growth in Key Metrics
Neville Noronha, CEO & Managing Director, Avenue Supermarts Ltd., commented on the positive financial performance. He highlighted the growth in revenue and gross margin, attributing it partly to the increasing contribution from the General Merchandise and Apparel segment.
Store Expansion and Investment
Avenue Supermarts opened six new DMart stores during the quarter, bringing their total store count to 371 as of June 30, 2024. Mr. Noronha acknowledged rising operating costs but attributed them to the company’s focus on improving customer service levels and building capabilities for future growth.
Stock Market Performance
The positive financial results were reflected in the stock market, with Avenue Supermarts’ share price on the BSE closing over 1% higher on Friday at ₹4,953.35 per share.
Looking Ahead
Avenue Supermarts’ strong Q1 performance indicates the company’s continued success in the Indian retail market. With its focus on expansion, customer service, and future investments, the company is well-positioned for sustained growth.
