DMart Q4 Results: Avenue Supermarts' net profit drops 2% to ₹551 crore, revenue up 17% YoY

DMart Q4 Results: Ace investor Radhakishan Damani-backed Avenue Supermarts, which operates the retail chain DMart, announced its January-March quarter results for fiscal 2024-25 (Q4FY25) on Saturday, March 3, reporting a drop of two per cent in consolidated net profit at ₹551 crore, compared to ₹553 crore crore in the corresponding period last year.

Neville Noronha, CEO & Managing Director, Avenue Supermarts Limited, said, “ Our revenue in Q4 FY25 grew by 16.7% over the previous year. Profit after tax (PAT) before prior period adjustments declined by 3.4% over the previous year and was not in line with sales growth. Two years and

older DMart stores grew by 8.1% during Q4 FY25 as compared to 10.3% in Q4 FY24. The growth is primarily driven by increased 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."

Anshul Asawa, our CEO Designate, has joined us in mid-March, 2025 and is going through a detailed

familiarization and understanding of the organization. He should be taking charge of all operational aspects of the retail business in another 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. While overall gross margins in the matured metro towns will remain soft for a certain period of time, our value positioning is well anchored in the minds of the shoppers of DMart Stores."

Dmart, a hypermarket chain, has taken on rent 35,000 sq ft space in real estate firm Migsun Group's shopping mall at Ghaziabad, Uttar Pradesh.

"Dmart has signed a 29-year 11 Months lease agreement with Migsun Group for 35,000 sq ft of retail space at 'Migsun Mi Gente Mall' in Raj Nagar Extension, Ghaziabad at a monthly rental value of ₹21 lakh," the realty firm said in a statement. Earlier, Dmart had purchased 47,000 sq ft of space in the Migsun project at Rohini, Delhi for ₹108 crore.