DMart, operated by Avenue Supermarts, has reported a significant increase in its net profit for the fourth quarter of the fiscal year. The company’s net profit rose by 8 per cent, reaching Rs. 460 crore (US $ 56 million) compared to Rs. 427 crore in the same period last year.
Avenue Supermarts also witnessed substantial growth in revenue during the quarter, with a 21 per cent increase to Rs. 10,594 crore compared to Rs. 8,786 crore in the corresponding period of the previous fiscal year.
The positive trend continued throughout the full year, as the company’s revenue surged by 38 per cent to Rs. 42,840 crore in FY ‘23, compared to Rs. 30,976 crore in FY ‘22. Furthermore, the net profit for the year experienced a remarkable 59 per cent rise, reaching Rs. 2,379 crore as opposed to Rs. 1,493 crore in the previous fiscal year.
Neville Noronha, CEO and Managing Director of Avenue Supermarts Limited, expressed his satisfaction with the results. In a statement, he highlighted the growth in key financial parameters such as revenue, EBITDA, and PAT. However, he acknowledged the impact of lower consumer spending on the margin mix, particularly in general merchandise and apparel.
Despite the challenges, DMart’s e-commerce business continued to expand, covering its existing 22 cities. Additionally, the company expanded its operations to 10 new cities during FY ‘23, demonstrating its commitment to growth and reaching a wider customer base.
DMart opened 40 new stores during the 2022-23 fiscal year, bringing the total number of stores to 324 as of 31st March 2023. This further solidifies DMart’s position as a leading retail chain in India.
With consistent growth in both net profit and revenue, DMart and Avenue Supermarts are poised for continued success in the retail industry, capitalizing on their expansion efforts and adapting to evolving consumer preferences.
