Avenue Supermarts Share Price: DMart informed the exchanges about its earnings for the fourth quarter and full fiscal (FY 2024-25) on May 3
DMart Share Price: DMart (Avenue Supermarts Ltd) share price declined over 3 per cent in early trade on the NSE on May 5. Shares of the supermarket chain declined after the company posted a year-on-year and quarter-on-quarter decline in its bottom-line for the March quarter.
DMart informed the exchanges about its earnings for the fourth quarter and full fiscal (FY 2024-25) on May 3. The company’s consolidated profit-after-tax for the March quarter of FY 2024-25 declined by over 2 per cent to Rs 550.79 crore compared to Rs 563.14 crore in the March quarter of FY 2023-24. Sequentially the company’s profit-after-tax also declined by nearly 24 per cent from Rs 723.54 crore in the December quarter of FY 2024-25.
The company’s consolidated revenue from operations increased by nearly 17 per cent to Rs 14,871.86 crore in the March quarter of FY25 from Rs 12,726.55 crore in the corresponding quarter of the preceding fiscal. The company’s revenue from operations for the March quarter of FY25 fell by nearly 7 per cent from Rs 15,972.55 crore in the December quarter.
DMart’s consolidated revenue from operations for FY 2024-25 increased nearly 17 per cent to Rs 59,358.05 crore from Rs 50,788.83 crore in FY 2023-24. The supermarket chain’s profit-after-tax for FY25 grew by almost 7 per cent to Rs 2,707.45 crore compared to Rs 2,535.61 crore in FY24.
DMart’s Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) for FY25 increased by more than 9 per cent to Rs.4,487 crore from Rs.4,104 in FY24. However the company’s EBITDA margin for FY 2024-25 declined to 7.6 per cent from 8.1 per cent in the preceding fiscal.
Neville Noronha the CEO and Managing Director of Avenue Supermarts said in a release that the company’s margins in its brick-and-mortar business were affected by several headwinds such as increased competition in the FMCG space, surge in wages of entry level employees and the diversion of funds towards the opening of new stores. Notably the company added 28 stores in Q4FY25.
“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,” Noronha said.
In a year shares of DMart have declined over 14 per cent on the NSE. On a year-to-date (YTD) basis the company’s shares gained nearly 11 per cent. In six months, the supermarket chain’s shares traded higher by 0.46 per cent. In a month DMart shares have fallen over 5 per cent and in five days the stock has declined nearly 10 per cent.
At the time of writing the DMart shares traded at Rs 3,966.2 apiece down by 2.29 per cent on the