July 15, 2024
New Delhi, India
Key Financial Highlights
Avenue Supermarts, the parent company of the retail chain DMart, reported strong financial results for the first quarter of fiscal year 2024-25 (Q1FY25). The company posted a significant rise in net profit and revenue, highlighting its continued growth and robust performance.
Profit and Revenue Growth
- Net Profit: Avenue Supermarts’ consolidated net profit for Q1FY25 increased by 17.5%, reaching ₹773.8 crore, compared to ₹658.8 crore in the same quarter last year.
- Revenue: The company’s revenue from operations rose by 18.6% year-on-year, amounting to ₹14,069.1 crore, up from ₹11,865.4 crore in Q1FY24.
Expenses and EBITDA
- Total Expenses: The company’s total expenses in Q1FY25 increased by 18.62%, totaling ₹13,056.61 crore.
- EBITDA: Consolidated earnings before interest, tax, depreciation, and amortization (EBITDA) for the quarter stood at ₹1,221.3 crore, up from ₹1,035.3 crore in the previous year. The EBITDA margin remained steady at 8.7%.
Standalone Performance
- Standalone Net Profit: The standalone net profit for Q1FY25 rose by 16.8% to ₹812 crore, compared to ₹695 crore in Q1FY24.
- Standalone Revenue: Standalone revenue for the quarter increased by 18.3%, reaching ₹13,712 crore, up from ₹11,584 crore in the same period last year.
Operational and Strategic Developments
- Store Expansion: Avenue Supermarts opened six new stores during the June quarter, bringing the total number of DMart stores to 371.
- Strategy: The company continues to follow its everyday low cost – everyday low price (EDLC-EDLP) strategy to procure goods at competitive prices.
Market Reaction
As of 10:46 AM on July 15, 2024, Avenue Supermarts’ shares were trading at ₹4,993.75, up by ₹50.10 or 1.01%.
Conclusion
Avenue Supermarts’ impressive Q1 results underscore its strong market position and effective operational strategies. The significant growth in both net profit and revenue demonstrates the company’s ability to capitalize on market opportunities and expand its retail footprint.
Currency Market Update July 15, 2024
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