Avenue Supermarts Ltd, an operator of the DMART supermarket chain, reported that its consolidated net profit fell significantly by 23.4% in the fourth quarter of fiscal 4, from Rs 71928 crore to Rs 55079 crore in the fourth quarter.
The company's total spending rose 18.2% to Rs 141,7661 crore in fiscal 25, compared with Rs 120,012.2 crore in the same period last year, putting pressure on profitability. On a quarter-quarter basis, the total revenue of Super Matt Avenue fell 7%, down from Rs 159,966.9 billion in Q3 to Rs 148,969 million in Q4, Q3, Q3.
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DMART's sales growth will drop to 8.1%
Avenue Supermarts CEO Neville Noronha pointed out that profits from after-tax tax (PAT) before the upfront adjustment of the DMART (Brick and Mortar) business fell by 3.4%. Still, DMART stores grew 8.1% in the fourth quarter of FY4, slower than the 10.3% growth recorded in the same period last year.
EBITDA's edge growth 1.2%
The company's EBITDA (revenue before interest, taxes, depreciation and amortization) rose slightly to Rs 955 crore in the 4th quarter, an increase of 1.2% from Rs 944 crore in the 4th quarter of FY24. However, EBITDA's margin fell to 6.4%, down from 7.4% in the same quarter last year.
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What hurt profits this quarter?
CEO Neville Noronha said profit declines were mainly due to three reasons:
- More competition in the FMCG segment affects profit margins.
- Driven by a shortage of skilled workers, entry-level employees are paid more.
- Continue to invest in improving services such as faster checkouts and better product availability.
- The company also opened more stores this quarter, which increased its costs.
Noronha mentioned that Anshul Asawa joined the CEO in mid-March 2025 and is currently studying the business. He is expected to take over the operations within the next 4-5 months, giving Noronha more time to focus on store expansion, e-commerce and other growth areas.
