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  5. DMart parent Avenue Supermarts' shares crack nearly 6% post Q3 results, top-level management reshuffle; check details

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DMart parent Avenue Supermarts' shares crack nearly 6% post Q3 results, top-level management reshuffle; check details

Upstox
By Upstox News Desk

3 min read | Updated on January 13, 2025, 09:49 IST

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SUMMARY

Avenue Supermarts CEO and Managing Director Neville Noronha said, "The Q3 FY 2025 same-store revenue growth for 2-year and older stores was at 8.3%. We continue to see the increased intensity in discounting in the FMCG category and the consequent impact to high turnover per square feet stores in metro towns".

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DMART
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Mumbai-based Avenue Supermarts was operating 387 stores as of December 31, 2024.

Mumbai-based Avenue Supermarts was operating 387 stores as of December 31, 2024.

DMart Q3: Shares of Avenue Supermarts Ltd., which owns and operates the retail chain D-Mart, slipped as much as 5.7% to ₹3,474 apiece on the BSE on Monday, January 13, after the company, during the weekend, reported its December quarter results and a top-level management change.

The company reported a 4.8% rise in its consolidated net profit to ₹723.54 crore for the third quarter ended December 2024.

The company had posted a net profit of ₹ 690.41 crore a year ago.

Its revenue from operations rose 17.68% to ₹ 15,972.55 crore during the quarter under review. It was ₹ 13,572.47 crore in the corresponding quarter of the last fiscal.

"PAT margin stood at 4.5% in Q3 FY25 as compared to 5.1% in Q3 FY24," Avenue Supermarts said in its earnings statement.

Its total expenses increased 18.52% to ₹ 15,001.64 crore.

Avenue Supermarts' total income, which includes other income, was ₹ 15,996.69 crore, up 17.57% in the December 2024 quarter. Avenue Supermarts CEO and Managing Director Neville Noronha said, "The Q3 FY 2025 same-store revenue growth for 2-year and older stores was at 8.3%. We continue to see the increased intensity in discounting in the FMCG category and the consequent impact to high turnover per square feet stores in metro towns".

However, this quarter, the impact has relatively reduced compared to the previous quarter (Q2 FY2025).

On its online ordering service DMart Ready, Noronha said it grew by 21.5% in the first nine months of FY 2025.

"In the rapidly evolving dynamics of the grocery e-commerce market, we are seeing significantly more demand for home delivery compared to the pick-up point, and hence, we continue to align our business to that extent," the CEO added.

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Besides the Q3 earnings, the company announced a top-level management reshuffle with the appointment of Unilever's Anshul Asawa as its CEO Designate.

Asawa currently serves as Country Head of Unilever in Thailand and General Manager for the Home Care business unit in Greater Asia.

The incumbent Managing Director and CEO, Neville Noronham, whose current term is ending in January 2026—a year from now—will not be offering his candidature for renewal of his role, according to a statement from Avenue Supermarts.

Mumbai-based Avenue Supermarts was operating 387 stores as of December 31, 2024.

Avenue Supermarts' stock performance

The past year has been a dismal period for the shareholders of Avenue Supermarts, as the stock price has fallen over 4% during the period.

(With PTI inputs)

About The Author

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