New Delhi, May 3 (IANS) Radhakishan Damani-founded Avenue Supermarts Ltd, which operates supermarket chain DMart, on Saturday reported a significant dip in its consolidated net profit at Rs 550.79 crore in the Q4 of FY25, from Rs 719.28 crore in the year-ago quarter (Q4 FY24).
Total expenses also soared to Rs 14,176.61 crore in Q4 of last financial year, from Rs 12,001.22 crore in the same quarter in FY24.
According to its stock exchange filing, on the quarterly basis, total income of the company also went down to Rs 14,896.91 crore (QoQ), from Rs 15,996.69 crore (unaudited) in the previous quarter (Q3 FY24).
Neville Noronha, CEO and Managing Director, Avenue Supermarts Limited, said under the DMart (brick and mortar) business, “profit after tax (PAT) before prior period adjustments declined by 3.4 per cent over the previous year and was not in line with sales growth”.
He added that DMart stores grew by 8.1 per cent during Q4 FY25 as compared to 10.3 per cent in Q4 FY24 and the growth is primarily driven by increased footfalls.
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) in Q4 FY25 stood at Rs 955 crore, as compared to Rs 944 crore in the corresponding quarter of last year. EBITDA margin stood at 6.4 per cent in Q4 as compared to 7.4 per cent in the year-ago quarter.
According to Noronha, three things have happened during this quarter – “increased competitive intensity in the FMCG space has impacted our gross margins; surge in wages of entry level positions due to demand / 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”.
“We also had a larger number of store openings during this quarter,” he noted.
He further stated that Anshul Asawa, the CEO Designate, “has joined us in mid-March, 2025 and is going through a detailed familiarisation and understanding of the organisation”.
“He 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, e-commerce capacity build-up and other non-retail aspects of the business,” informed Noronha.
–IANS
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