D-Mart soars! Avenue Supermarts beats expectations with stellar Q1 earnings

Avenue Supermarts Ltd. (ASL), the powerhouse behind the D-Mart chain of stores and a leading player in India’s retail sector, has unveiled its financial outcomes for the first quarter of the fiscal year 2025, marking significant growth across key financial metrics both on standalone and consolidated bases.

In its standalone financials for the quarter ending June 30, 2024, ASL reported a substantial rise in total revenue, which reached Rs. 13,712 crore, up 18.4% from Rs. 11,584 crore in the same quarter last year. The company’s Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) also saw an impressive increase, standing at Rs. 1,221 crore—a 17.8% growth compared to Rs. 1,036 crore in Q1FY24. Despite competitive market pressures, the EBITDA margin remained stable at 8.9%.

Net profit for the standalone results was also up, posting Rs. 812 crore, a 16.8% increase from Rs. 695 crore in the prior year’s quarter. However, the Profit After Tax (PAT) margin saw a slight dip to 5.9% from 6.0% in Q1FY24. Basic Earnings Per Share (EPS) experienced a rise to Rs. 12.49, up from Rs. 10.71.

D-Mart owner Avenue Supermarts Ltd. achieved remarkable growth in Q1FY25 with strong revenue, EBITDA, and net profit improvements, spearheaded by strategic store expansions and robust operational strategies.

On a consolidated basis, ASL continued to show strength with total revenue climbing to Rs. 14,069 crore from Rs. 11,865 crore year-over-year, while EBITDA matched the standalone figure at Rs. 1,221 crore. The consolidated net profit stood at Rs. 774 crore, increasing from Rs. 659 crore in the same period last year, with the PAT margin holding steady at 5.5%. Consolidated EPS was reported at Rs. 11.89, up from Rs. 10.14.

Under the leadership of CEO & Managing Director, Neville Noronha, ASL emphasized its operational efficiency and strategic expansion. The quarter witnessed the opening of six new stores, bringing the total to 371 outlets as of June 30, 2024. This expansion is a part of ASL’s ongoing efforts to enhance service levels and build future capabilities, aligning with its Everyday Low Cost – Everyday Low Price (EDLC-EDLP) strategy.

The strong quarterly performance by Avenue Supermarts underscores its robust business model and operational efficacy in the highly competitive retail market. With a clear focus on cost management and customer value, ASL continues to enhance its market position, aiming for sustained growth and market expansion in the upcoming quarters.