Avenue Supermarts Shares Fell Over 2% After Release of Q3 FY25 Results

On January 13, 2025, Avenue Supermarts shares dropped over 2% in the morning trade and touched the day low of ₹3,474.00 at 09:30 AM after opening at ₹3,520.00 on BSE. The parent company of D-Mart, one of the largest food & grocery retailers in India released its results for the quarter (Q3 FY25) and nine months ended December 31, 2024.

D-Mart Performance (Standalone Basis)

For the quarter ending December 31, 2024, the company reported a total revenue of ₹15,565 crore, up from ₹13,247 crore in Q3 FY24. EBITDA for the quarter stood at ₹1,235 crore, compared to ₹1,121 crore in the same quarter last year. The company also saw an increase in net profit, which reached ₹785 crore for Q3 FY25. PAT margin was 5.0% in Q3 FY25, down from 5.5% in Q3 FY24.

Total Revenue for 9M FY25 was ₹43,327 crore, compared to ₹37,139 crore in the same period last year. Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) for 9M FY25 were ₹3,561 crore, up from ₹3,159 crore in 9M FY24. EBITDA margin stood at 8.2% in 9M FY25, down from 8.5% in 9M FY24. Net profit for 9M FY25 was ₹2,307 crore, compared to ₹2,091 crore in 9M FY24. PAT margin was 5.3% in 9M FY25, down from 5.6% in 9M FY24.

D-Mart Results (Consolidated Basis)

For the quarter ending December 31, 2024, total revenue stood at ₹15,973 crore, compared to ₹13,572 crore in the same period last year. EBITDA for Q3 FY25 was ₹1,217 crore, up from ₹1,120 crore in the corresponding quarter of last year. EBITDA margin stood at 7.6% in Q3 FY25, down from 8.3% in Q3 FY24. Net profit for Q3 FY25 was ₹724 crore, compared to ₹690 crore in Q3 FY24. PAT margin was 4.5% in Q3 FY25, compared to 5.1% in Q3 FY24.

Total Revenue for 9M FY25 was ₹44,486 crore, compared to ₹38,062 crore in the same period last year. EBITDA for 9M FY25 stood at ₹3,532 crore, up from ₹3,160 crore in 9M FY24. EBITDA margin stood at 7.9% in 9M FY25, down from 8.3% in 9M FY24. Net profit for 9M FY25 was ₹2,157 crore, compared to ₹1,972 crore in 9M FY24. PAT margin was 4.8% in 9M FY25, down from 5.2% in 9M FY24.

Leadership Commentary

Commenting on the performance of the company Mr. Neville Noronha, CEO & Managing Director, Avenue Supermarts Limited, said: “Our revenue for Q3 FY 2025 grew by 17.5% over the previous year. The Q3 FY 2025 same-store revenue growth for 2 years and older stores was at 8.3%. We continue to see the increased intensity of discounting in the FMCG category and the consequent impact of high turnover per square foot stores in metro towns. However, this quarter the impact has relatively reduced versus the previous quarter (Q2 FY 2025). We stay committed to being the most preferred value retailer to customers in the vicinity of a DMart store or a Fulfilment centre of DMart Ready.

He further added, “DMart Ready grew by 21.5% in 9 months FY 2025. In the rapidly evolving dynamics of the grocery e-commerce market, we are seeing significantly more demand for home delivery compared to pick-up point and hence we continue to align our business to that extent. Our home delivery business now far exceeds our pick-up point sales contribution. We will continue to provide both channels of delivery as an option to our shoppers in select towns. In several towns, we now only operate ‘Home Delivery’ as a delivery channel.”

D-Mart Announced New CEO

The company in the exchange filing stated that Neville Noronha will not be offering his candidature for renewal of his role as the Managing Director and CEO after his current term in January 2026 – a year from now. Hence, the Board of Directors appointed Anshul Asawa as the CEO Designate, effective March 15, 2025.

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