Avenue Supermarts Q4 Results: D-Mart parent's profit slips 2% YoY amid cost pressures
Published on 03/05/2025 05:44 PM
Avenue Supermarts Q4 Results: D-Mart parent's profit slips 2% YoY amid cost pressuresCEO Neville Noronha said that while store expansion continued, higher competition in FMCG, wage cost pressures, and ongoing investments in service levels weighed on margins. He added that DMart Ready, the company’s e-commerce business, performed strongly in metro cities through the home delivery channel, despite a reset involving closure of pick-up points.By Poonam Behura May 3, 2025, 5:44:23 PM IST (Published)1 Min ReadAvenue Supermarts Ltd, which operates the D-Mart retail chain, reported a 2% year-on-year decline in consolidated net profit to ₹551 crore for the quarter ended March 31, 2025 (Q4FY25), compared with ₹563 crore a year earlier, as margins remained under pressure despite strong revenue growth.
Total revenue rose 17% YoY to ₹14,872 crore, driven by increased footfalls and store additions. EBITDA rose marginally by 1.2% YoY to ₹955.3 crore, but the EBITDA margin declined to 6.4% from 7.4% in Q4FY24.
For FY25, consolidated net profit stood at ₹2,707 crore, up 6.7% YoY, while revenue rose to ₹59,358 crore. D-Mart added 50 new stores during the year, ending FY25 with 415 stores and a retail business area of 17.2 million square feet.
CEO Neville Noronha said that while store expansion continued, higher competition in FMCG, wage cost pressures, and ongoing investments in service levels weighed on margins. He added that DMart Ready, the company’s e-commerce business, performed strongly in metro cities through the home delivery channel, despite a reset involving closure of pick-up points.
Noronha noted that mature metro markets are seeing softer gross margins, though non-metro towns are performing better. The company continues to focus on store growth, digital expansion, and supply chain efficiency.Continue ReadingCheck out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsAvenue SupermartD-Martshare market today