Rising ompetition, staff costs dent DMart's margins, says CEO
Avenue Supermarts reported a 17% increase in net revenue for the quarter ended March, but faced margin pressures due to competition, rising employee costs, and service investments. While overall business remains resilient, the retailer is performing better in non-metro towns. The company is also focusing on store openings and e-commerce expansion.
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Mumbai: Avenue Supermarts , which operates DMart retail stores, said its gross margins were impacted due to increased competitive intensity in the consumer goods space, rising employee costs and higher investments in service levels.The largest listed retailer posted a 17% increase in net revenue at '14,462 crore in the quarter ended March, while net profit rose 3% to '620 crore. In FY25, its total revenue was '57,790 crore, growth of 17% on a net profit increase of 9% to '2,927 crore. The retailer's Ebitda margin was 7.9% during FY25, lowest since FY21."Three things have happened during this quarter-increased competitive intensity in the fast moving consumer space has impacted our gross margins, surge in wages of entry-level positions due to demand and supply mismatch of skilled workforce; and continued investments in improving our service levels with respect to faster turnarounds on availability, checkouts and future store openings," Neville Noronha , chief executive of Avenue Supermarts , said in its earnings statement, adding that overall gross margins in the matured metro towns will remain soft for a certain period of time.The company also had higher store openings during the quarter with 28 new doors last quarter and 50 outlets in FY25. The company said its overall business continues to be resilient in metro towns, but it is doing significantly better in non-metro towns.In January, the company announced that Anshul Asawa will replace Noronha in February 2026, after the latter chose not to continue. At present, Asawa is going through a detailed familiarisation and understanding of the organisation, and 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, ecommerce capacity build-up and other non-retail aspects of the business," said Noronha. The firm said profitability for its standalone online segment under DMart Ready could be some time away.
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Time of India
30-05-2025
- Time of India
Why India's 1% are staking claims in the luxury concrete jungle; 10 biggest realty splurges
One of India's costliest residential transactions to date saw pharma billionaire Leena Gandhi Tewari, chairperson of USV Ltd, spend ₹635 crore on two sea-facing duplexes in Naman Xana, Worli. Spread over four floors with a combined carpet area of 22,572 sq ft, the deal works out to ₹2.83 lakh per sq ft, setting a new national benchmark , as per ET. Over the past few years, India's ultra-high-net-worth individuals (UHNWIs) have ramped up investments in residential real estate, reshaping the country's luxury housing landscape. The headline numbers say it all. Tewari's ₹639 crore twin duplex deal in Worli, the Kotak family's ₹628 crore consolidation of nearly an entire sea-facing building in Mumbai, and DMart founder Radhakishan Damani's ₹1,000 crore heritage bungalow acquisition in Malabar Hill. The message is clear. India's wealthy are not limiting their investments to equities or startups. Increasingly, they are putting money into bricks and mortar. And not just any bricks and mortar but the most coveted addresses in the country. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Also Read: Indian residential real estate hits new highs with record-breaking apartment deals in Mumbai What is driving the trend? Several factors are at play. First, there is growing conviction that luxury real estate in India is entering a golden phase. Demand for marquee properties is far outstripping supply, particularly in prime pockets such as Lutyens' Delhi, Malabar Hill, Worli, and Golf Course Road in Gurugram. That scarcity is pushing prices into uncharted territory. Tewari's purchase at ₹2.83 lakh per sq ft set a new national record. In Gurugram, DLF Camellias has seen rates reach as high as ₹1.17 lakh per sq ft according to Anarock and media reports. Furthermore, a recent Knight Frank report revealed that Mumbai, Bengaluru, and Delhi ranked among the top 15 global cities for prime residential price growth in Q1 2025, with Bengaluru placed fourth, Mumbai fifth, and Delhi fifteenth. The report tracked price movements across prime residential markets in 45 global cities, highlighting India's rising prominence in the luxury real estate segment. Live Events Also Read: This area in Delhi-NCR saw a 98% property price rise in the last 5 years, see how much property prices appreciated in your locality Many of these deals carry strategic value. Take the Kotak family's near-total ownership of a sea-facing building in Worli. It is widely seen as a redevelopment play. These are not just end-use homes but investment vehicles, with long-term potential for high-yield luxury apartments or mixed-use projects. India's top luxury residential deals Sl No. Buyer Location Deal Value (₹ cr) Highlights 1 Radhakishan Damani (reportedly) Malabar Hill, Mumbai 1,000 Heritage bungalow; 1.5-acre plot; redevelopment potential 2 Leena Gandhi Tewari Worli, Mumbai 639 Twin duplexes; ₹2.83 lakh/sq ft; 22,572 sq ft 3 Uday Kotak family Worli Sea Face, Mumbai 628 (426 + 202) 21 of 24 flats; potential redevelopment 4 Kumar Mangalam Birla Malabar Hill, Mumbai 425 Jatia House; 25,000 sq ft bungalow 5 J.P. Taparia family Three Sixty West, Worli, Mumbai 369 6 apartments; 5,000 sq ft each 6 Rishi Parti & others DLF Camellias, Gurugram 285 (190 + 95) Penthouse + apartment; ₹1.17 lakh/sq ft 7 Nadir Godrej Malabar Hill, Mumbai 180 3 apartments in Ruparel House 8 Vasudha Rohatgi Golf Links, Delhi 160 2,160 sq yd bungalow 9 Bhanu Chopra Golf Links, Delhi 127.5 11,000 sq ft bungalow 10 Gaurav Trehan Malabar Hill, Mumbai 88 5,381 sq ft flat with private deck (Sources: Industry data, media reports) What the numbers reveal According to the Knight Frank Wealth Report 2024, India's UHNWI population grew by six percent last year to reach 85,698. This number is expected to rise to 93,753 by 2028. Residential real estate now accounts for 32% of their investment portfolios, up from 25% in 2020. This is a notable shift towards tangible, high-value assets. India's real estate sector began 2025 on a strong note. CBRE's India Market Monitor Q1 report shows that equity investments surged to $3 billion in the January to March quarter, a 74% year-on-year jump driven by developer activity and increased interest in Real Estate Investment Trusts (REITs). The luxury housing segment stood out with sales up 28% year-on-year. Delhi-NCR led the surge, with a balance between new launches and demand. Bengaluru, Mumbai and Delhi-NCR together accounted for 67% of total equity inflows, showing their dominance as real estate hubs. Also Read: Looking to buy an apartment in Mumbai for Rs 1 crore? These areas in the suburbs look promising High-end deals continue to set records. Nadir Godrej spent ₹180 crore on three apartments in Malabar Hill. Rishi Parti paid ₹190 crore for a penthouse in DLF Camellias. Even relatively new entrants such as RateGain founder Bhanu Chopra are buying into this segment with his ₹127.5 crore Golf Links bungalow. Several other marquee transactions, including a reported ₹500 crore sea-facing bungalow in Mumbai's Cuffe Parade, remain confidential due to privacy clauses. This boom in ultra-luxury real estate is about more than just eye-popping prices. It reflects a structural shift in how India's wealthiest individuals are allocating capital. With global real estate markets stagnating and Indian equities prone to volatility, many billionaires are looking inward for stability and finding it in landmark properties with enduring value.
Mint
15-05-2025
- Mint
Best stock picks for today, 15 May, as recommended by Trade Brains Portal
The Indian stock markets ended positively today. The Nifty 50 closed at 24,666, up by 88.55 points, or 0.36%, while BSE Sensex rose 182.34 points, or 0.22%, to 81,330.56. Today, we recommend two blue-chip stocks, one from the IT sector and the other from the retail sector. Tata Consultancy Services Ltd Additionally, free cash flow of $1.48 billion and invested funds of $5.53 billion highlight TCS's strong liquidity position, enabling sustained shareholder returns. Furthermore, the order book TCV (total contract value) stood at $12.2 billion, with North America TCV reaching an all-time high of $6.8 billion, BFSI TCV at $4.0 billion, and Consumer Business TCV at $1.7 billion, which reflects TCS's ability to gain market share. TCS has a strong workforce of 6.07+ lakh employees. The company has 13.3% IT services attrition and 35.2 % women employees, highlighting its focus on talent retention, diversity, and development. 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Also Read: TCS commentary offers some optimism, but the Street isn't buying it Avenue Supermarts Ltd (Dmart) Additionally, EPS growth of 6.7% YoY indicates consistent profitability. Earnings before interest, tax, depreciation, and amortization (Ebitda) in FY25 stood at ₹4,487 crore, as compared to ₹4,104 crore during FY24, and the Ebitda margin stood at 7.6%. Their days inventory and days payables were stable at 31.4 and 7.2, respectively, with a lower debt-to-equity ratio at 0.03 for FY25. Dmart's store count expanded by adding 50 stores this year to reach 415 stores in FY25, from 365 stores in FY24. Its e-commerce venture, Dmart Ready, is currently servicing 25 cities and is growing extremely well in key metro towns, as per the management. DMart's retail business area of 17.2 million sq. ft. spans across Maharashtra, Gujarat, Telangana, Andhra Pradesh, Karnataka, Tamil Nadu, Madhya Pradesh, Rajasthan, Punjab, NCR, Chhattisgarh, and Daman. 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We advise investors to check with certified experts before making any investment decisions.
Time of India
07-05-2025
- Time of India
I-Sec maintains Reduce on Avenue Supermarts, revises target price to Rs 3,500
ICICI Securities has a 'Reduce' call for Avenue Supermarts. The target price is revised to Rs 3,500. Avenue Supermarts' revenue, EBITDA and PAT are expected to grow. The company reported a consolidated total income of Rs 14896.91 crore for the quarter ended March 31, 2025. Upside risks include better general merchandise recovery. Downside risk is lower retail expansion. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads (Disclaimer: Views and recommendations given in this section are the analysts' own and do not represent those of Please consult your financial adviser before taking any position in the stock/s mentioned.)
