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Fashion Network
05-05-2025
- Business
- Fashion Network
Avenue Supermarts' D-Mart sees profit margins dip to lowest rates in years in FY25 Q4
Avenue Supermarts' apparel, lifestyle, and groceries business D-Mart saw its profit margins drop in the fourth quarter of the 2025 financial year despite double digit revenue growth. The business also saw profits dip during the full 2025 fiscal year as India's modern retail landscape evolves. "Our revenue in Q4 FY25 grew by 16.7% over the previous year," said D-Mart's managing director and CEO Neville Noronha in a media statement about the business' quarterly results, ET Retail reported. "Profit after tax before prior period adjustments declined by 3.4% over the previous year and was not in line with sales growth." D-Mart reported a consolidated net profit of Rs 551 crore and a revenue total of Rs 14,872 crore for the fourth quarter of the 2025 financial year. This represents a profit after tax margin of 3.7% which is D-Mart's lowest quarterly profit after tax margin since the fourth quarter of the 2023 financial year. The business' earnings before interest, tax, depreciation, and amortisation margin was at 6.4% during the final quarter of the past fiscal year which was its lowest EBITDA rate in 12 quarters,nthe Economic Times reported. D-Mart's parent company Avenue Supermarts' consolidated profit after tax margin for the full 2025 financial year was at 4.6% with a consolidated EBITDA margin of 7.6%.
Business Standard
05-05-2025
- Business
- Business Standard
Avenue Supermarts drops after Q4 PAT slips 2% YoY to Rs 551 cr
Avenue Supermarts (Dmart) declined 1.45% to Rs 4001.60 after the company's consolidated net profit fell 2.19% to Rs 550.90 crore in Q4 FY25 as compared with Rs 563.25 crore in Q4 FY24. Revenue from operations jumped 16.86% YoY to Rs 14,871.86 crore during the quarter ended 31st March 2025. Profit before tax (PBT) slipped 5.62% to Rs 720.30 crore in Q4 FY25 as against Rs 763.20 crore in Q4 FY24. Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) in Q4FY25 stood at Rs 955 crore, registering the de-growth of 1.17%, as compared to Rs 944 crore recorded in the corresponding quarter of last year. EBITDA margin stood at 6.4% in Q4FY25 as compared to 7.4% in Q4FY24. The company added 28 stores in Q4 FY25. D-Mart follows Everyday low cost - Everyday low price (EDLC-EDLP) strategy which aims at procuring goods at competitive prices, using operational and distribution efficiency and thereby delivering value for money to customers by selling at competitive prices On full year basis, the companys consolidated net profit climbed 6.78% to Rs 2,708.02 crore in FY25 as against 2,536.17 crore in FY24. Revenue from operations jumped 16.87% to Rs 59,358.05 in FY25 as compared with Rs 50,788.83 crore in FY24. It added 50 stores in FY25. On Standalone basis, the companys net profit rose 2.57% to Rs 619.71 crore in Q4 FY25 as compared with Rs 604.20 crore in Q4 FY24. Revenue from operations increased 16.69% YoY to Rs 14,462.39 crore in Q4 FY25. Neville Noronha, CEO & managing director, Avenue Supermarts, 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. Overall business continues to be resilient in metro 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 DMart Ready business is growing extremely well in key metro towns. We have shut down several pick-up points (PUPs), however, our Home Delivery channel is growing strongly and has more than compensated for any loss of sale of the PUPs. This year was a year of reset and review. However, it is also giving us confidence that our model is scalable and relevant to the Metro City shopper who appreciates DMart Ready for its value positioning and assortment profile. Avenue Supermarts is a Mumbai-based company, which owns and operates D-Mart stores. D-Mart is a national supermarket chain that offers customers a range of home and personal products under one roof. It offers a wide range of products with a focus on Foods, Non-Foods (FMCG) and General Merchandise & Apparel product categories.
Time of India
04-05-2025
- Business
- Time of India
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. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads 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 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 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 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.
Time of India
03-05-2025
- Business
- Time of India
DMart profit margins hit lowest in 3 years
Bengaluru: The consolidated profit and EBITDA margin of Avenue Supermarts , the parent company of retail chain DMart, hit a three-year low in Q4FY25, dragged by continuing headwinds in the consumer retail sector. For the quarter ended March 31, 2025 (Q4 FY25), the retail giant reported a consolidated net profit of Rs 551 crore on revenue of Rs 14,872 crore, with a PAT margin of 3.7 per cent. This is the lowest quarterly PAT margin the company has reported since at least Q4 FY23. The consolidated EBITDA margin for the quarter stood at 6.4 per cent, also the weakest in the last 12 quarters. For the full financial year FY25, Avenue Supermarts posted a consolidated PAT margin of 4.6 per cent (against 5 per cent in FY24) and a consolidated EBITDA margin of 7.6 per cent (against 8.1 per cent in FY24). By comparison, the company reported a peak 5.5 per cent PAT and 8.5 per cent EBITDA margins in FY23. This marks a consistent two-year decline in the company's profitability metrics despite steady topline growth. '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,' said CEO and MD Neville Noronha in the latest quarterly results media statement. Citing key reasons for the slowdown in Q4FY25, Noronha said that the increased competitive intensity in the FMCG space has impacted the company's gross margins. Additionally, the surge in wages of entry-level positions and continued investments by the retail giant in improving its service levels for faster turnarounds on availability, checkouts and future store openings impacted the quarter's performance. Growth without margin expansion While the retailer continued to report revenue growth, it is to be noted that the contribution from high-margin non-FMCG and general merchandise and apparel segments remains flat. For FY25, the foods segment, which includes grocery, dairy, fruits and vegetables, cooking oils, etc, contributed nearly 58 per cent of the company's revenue. While the non-foods segment, that is, homecare, personal care, toiletries and general merchandise and apparel, contributed 20 and 22 per cent to the overall revenue, respectively. DMart continues to expand the store footprint and has added 50 new stores in FY25, taking the total count to 415. In the January-March quarter alone, 28 stores were opened. Noronha, in his comments, said that two-year-old and older DMart stores grew by 8.1 per cent during the quarter, as compared to 10.3 per cent in Q4 FY24, with the growth primarily driven by increased footfall. He also added that the retailer is performing significantly better in non-metro towns as compared to metros. As per the statement, Anshul Asawa, as the new CEO Designate, will take charge of all operational aspects of the retail business in the next 4-5 months, while Noronha will dedicate more time to store-opening acceleration, e-commerce capacity build-up and other non-retail aspects of the business.
Time of India
03-05-2025
- Business
- Time of India
DMart Q4 profit dips marginally to Rs 551 crore despite strong revenue growth
New Delhi: Avenue Supermarts Ltd ., which owns and operates DMart retail stores, on Saturday, has reported a marginal decline in its consolidated net profit to Rs 551 crore for the quarter ended March 31, 2025, compared to Rs 563 crore in the same period last year, reflecting a drop of 2.1% year-on-year (YoY). This was despite a healthy 17% growth in revenue, which rose to Rs 14,872 crore during the March quarter from Rs 12,727 crore in Q4FY24. The company's EBITDA stood at Rs 955 crore, marginally higher than Rs 944 crore a year ago, while EBITDA margin shrank to 6.4% from 7.4%, impacted by rising operational costs and a squeeze in gross margins. For the full fiscal year FY25, DMart posted a net profit of Rs 2,707 crore, a growth of 6.7% from Rs 2,536 crore in FY24. Annual revenue surged 16.9% to Rs 59,358 crore, as against Rs 50,789 crore in the previous fiscal. However, full-year EBITDA margin also contracted to 7.6% from 8.1% in FY24. 'Our revenue in Q4FY25 grew by 16.7% over the previous year. However, PAT before prior period adjustments declined by 3.4% and was not in line with sales growth,' said Neville Noronha , CEO & MD, Avenue Supermarts. He attributed the margin pressure to three key factors: increased competitive intensity in the FMCG space, a sharp rise in wages at entry-level roles, and ongoing investments in improving service efficiency and store expansion. The company opened a larger number of stores this quarter, which also impacted short-term margins. Same-store growth also moderated slightly. Stores older than two years grew at 8.1% in Q4FY25, compared to 10.3% in Q4FY24, driven primarily by higher footfalls. 'While gross margins remain under pressure, especially in mature metro markets, our value positioning continues to resonate strongly with shoppers,' Noronha added. The retailer's Basic EPS for Q4FY25 stood at Rs 8.47, slightly lower than Rs 8.66 in the same period last year. For FY25, EPS improved to Rs 41.61, up from Rs 38.99 in FY24. As part of a leadership transition, Anshul Asawa, the newly appointed CEO Designate, joined in mid-March 2025 and will take over operational responsibilities in the coming months. This will allow Noronha to focus more on store expansion, e-commerce capacity, and other strategic initiatives. DMart continues to perform better in non-metro towns, while like-for-like growth is higher in less saturated metro markets, the company said. However, margin softness is expected to persist in mature locations due to price competition and wage inflation. Avenue Supermarts continues to follow its EDLC-EDLP strategy (Everyday Low Cost - Everyday Low Price) to deliver value to customers by leveraging scale, operational efficiency, and a competitive procurement model.
