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Avenue Supermarts Ltd., the parent company of the popular Indian retail chain DMart, recently announced its financial results for the third quarter of fiscal year 2025 (Q3FY25), revealing a healthy growth trajectory despite challenges in the market. The company reported a net profit of ₹723.72 crore, representing a 4.79% increase compared to the ₹690.61 crore earned during the same period in the previous fiscal year. This positive trend is further underscored by a significant rise in revenue from operations, which surged to ₹15,972.55 crore, a remarkable 17.68% increase compared to the ₹13,572.47 crore reported in Q3FY24. This growth demonstrates DMart's continued strong performance and resilience in a competitive retail landscape.
A key factor contributing to DMart's success is its strategic focus on value and affordability. The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) also increased, reaching ₹1,217 crore in Q3FY25, compared to ₹1,120 crore in the corresponding quarter of the previous year. This signifies robust operational efficiency and profitability. The EBITDA margin stood at 7.6% for the quarter, indicating a healthy balance between revenue generation and cost management. However, the company acknowledged the increased intensity of discounting in the FMCG (Fast-Moving Consumer Goods) category, particularly impacting high-turnover stores in metropolitan areas. CEO Neville Noronha noted that while this pressure existed, its impact was relatively less severe in Q3FY25 compared to the previous quarter.
DMart's e-commerce arm, DMart Ready, also exhibited significant growth, reporting a 21.5% increase in revenue over the first nine months of FY25. This underscores the increasing demand for online grocery delivery services. Noronha highlighted a shift in consumer preference towards home delivery compared to pick-up points, prompting the company to adapt its strategy accordingly. DMart Ready is now heavily focused on home delivery, with this channel surpassing pick-up point sales. While pick-up points remain available as an option in selected areas, several towns now exclusively offer home delivery, demonstrating DMart's agility in responding to evolving consumer needs and market trends. The nine-month figures also paint a positive picture, with revenue reaching ₹44,486 crore, compared to ₹38,062 crore in the same period last year. Net profit for the nine-month period stood at ₹2,157 crore, demonstrating sustained profitability and growth throughout the fiscal year.
Beyond the financial performance, Avenue Supermarts announced a significant leadership transition. Neville Noronha, the current CEO and Managing Director, will not be seeking a renewal of his term, which concludes in January 2026. This decision marks the end of a long and successful tenure for Noronha, who joined DMart in 2004 and oversaw its remarkable growth from a small chain of five stores to over 380 today. Under his leadership, DMart surpassed the ₹50,000 crore annual turnover milestone, a testament to his strategic vision and effective management. The company's board expressed deep appreciation for Noronha's contributions, highlighting his leadership, dedication, and focus on efficiency, fairness, and customer value. The Board has appointed Anshul Asawa as the CEO Designate, effective March 15th, 2025. Asawa brings extensive experience from Unilever, where he held various leadership roles across India, Asia, and Europe.
Asawa, an alumnus of IIT Roorkee and IIM Lucknow, will join DMart after a 30-year career with Unilever. He currently serves as Country Head of Unilever in Thailand and General Manager for the Home Care business unit in Greater Asia. His appointment reflects the company's commitment to maintaining its growth trajectory and its strategic vision for the future. Noronha will support Asawa during a one-year transition period, ensuring a smooth handover of responsibilities. The company also announced several other changes within its senior management team, including the appointment of Hitesh Shah as Head-Pharma Business, Rajeev Chandrasekharan as Head-Centre of Excellence, and a change in the role of Ashutosh Dhar as Head-Loss Prevention. These changes demonstrate a commitment to ongoing organizational development and strengthening of operational capabilities to support future growth and expansion. The financial results and leadership transition signify a period of both continued success and strategic evolution for DMart, positioning it for future growth in the highly competitive Indian retail sector.