Avenue Supermarts reports 17.7% revenue growth in Q3; announces leadership transition as Anshul Asawa named CEO Designate
New Delhi, January 12: Avenue Supermarts, the parent company of DMart, India's leading food and grocery retailer, reported a 4.9% rise in consolidated net profit to ₹724 crore for the quarter ending December 2024, compared to ₹690 crore in the same period last year.
The company recorded a total revenue of ₹15,973 crore, a 17.7% increase from ₹13,572 crore in Q3 FY24. However, the net profit margin fell to 4.5% from 5.1% last year, reflecting rising competition in the retail market.
Key Financial Highlights:
- EBITDA: ₹1,217 crore in Q3, up from ₹1,120 crore in the same quarter last year.
- EBITDA Margin: Declined to 7.6%, down from 8.3%.
- April-December Revenue: ₹44,486 crore, up from ₹38,062 crore last year.
- Nine-Month EBITDA: ₹3,532 crore, with a margin of 7.9%.
CEO Comments on Performance
Neville Noronha, CEO and MD of Avenue Supermarts, acknowledged the challenges in the FMCG sector due to intensified discounting and its impact on high-turnover metro stores.
“We remain committed to being the most preferred value retailer for our customers, whether at a DMart store or through DMart Ready fulfillment centers,” Noronha stated.
Noronha highlighted the shifting dynamics of the grocery e-commerce space, with home delivery now surpassing pick-up point contributions.
“In several towns, we now only operate 'Home Delivery' as the primary channel,” he said, signaling the company’s alignment with consumer preferences.
Leadership Transition Announcement
In a significant update, DMart announced that Neville Noronha will not extend his tenure as CEO and MD when his current term concludes in January 2026.
After 22 years with DMart, Noronha has decided to step down, leaving behind a legacy of exceptional leadership. The board expressed deep gratitude for his contributions and announced Anshul Asawa as the CEO Designate, effective March 15, 2025.
Outlook and Challenges
With a focus on evolving consumer behaviors, DMart continues to adapt to the rise in demand for grocery e-commerce, particularly home delivery. The company’s strong Q3 performance, despite margin pressures, underscores its resilience in an increasingly competitive market.
