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Avenue Supermarts Ltd, the parent company of the popular retail chain D-Mart, announced a strong performance for the second quarter ended September 2024. The company reported a 5.78% increase in its consolidated net profit, reaching Rs 659.44 crore. This marks a significant improvement compared to the Rs 623.35 crore net profit recorded in the corresponding quarter of the previous fiscal year. The growth in profitability reflects D-Mart's continued success in navigating a competitive retail market and effectively managing its operations.
The company's revenue from operations also witnessed a substantial surge, rising by 14.41% to Rs 14,444.50 crore during the quarter under review. This upward trend in revenue is a testament to D-Mart's ability to attract customers and drive sales despite economic headwinds. The company's strategic pricing policies, wide product selection, and emphasis on value-for-money offerings have contributed to its strong performance.
Furthermore, D-Mart's aggressive expansion strategy continues to bear fruit. During the quarter, the company opened six new stores, adding to its existing network and expanding its geographic reach. As of September 30, 2024, D-Mart operates a total of 377 stores across various states in India, including Maharashtra, Gujarat, Telangana, Andhra Pradesh, Karnataka, Tamil Nadu, Madhya Pradesh, Rajasthan, Punjab, NCR, Chhattisgarh, and Daman. This expansion is crucial for D-Mart's growth trajectory and allows it to tap into new markets and customer segments.
The company's CEO & Managing Director, Neville Noronha, highlighted the positive like-for-like revenue growth achieved by stores that have been operating for two years or longer. This indicates that existing D-Mart stores continue to perform well and are generating consistent revenue streams. The like-for-like revenue growth for the second quarter was 5.5%, demonstrating the company's ability to retain customers and maintain strong sales in mature markets.