Sun Jan 12 05:30:56 UTC 2025: **DMart Reports Strong Revenue Growth Despite Margin Squeeze; CEO to Step Down**

NEW DELHI, January 12, 2025 – Avenue Supermarts, the parent company of Indian grocery chain DMart, reported a 4.9 percent increase in consolidated net profit to Rs 724 crore for the quarter ending December 2024, compared to Rs 690 crore in the same period last year. Total revenue for the quarter surged 17.7 percent to Rs 15,973 crore. However, the net profit margin decreased to 4.5 percent from 5.1 percent year-on-year, reflecting increased discounting in the fast-moving consumer goods (FMCG) sector.

While EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) rose to Rs 1,217 crore for the quarter, the EBITDA margin also fell to 7.6 percent from 8.3 percent in the same period of the previous fiscal year. For the three quarters ending December 2024, DMart saw revenue reach Rs 44,486 crore, a significant increase but with a slight dip in EBITDA margin to 7.9 percent from 8.3 percent.

CEO and Managing Director Neville Noronha attributed the margin pressure to increased discounting in the FMCG category, particularly affecting stores in metro areas. He highlighted the significant growth in DMart’s home delivery business, which now surpasses pick-up point sales. The company plans to continue offering both delivery options where possible but will solely operate home delivery in select locations.

In a significant announcement, Avenue Supermarts revealed that Noronha will not seek renewal of his contract, ending his two-decade tenure as CEO and MD in January 2026. Anshul Asawa has been appointed as CEO Designate, effective March 15, 2025.

Read More