DMart Q4 Results Explained - (Jan–Mar 2025)

DMart (Avenue Supermarts) announced its financial results for the January–March 2025 quarter. Revenue Growth: - DMart earned ₹14,872 crore in Q4 FY25 — a 17% rise from ₹12,727 crore last year. Profit Down: - Despite higher sales, net profit fell slightly by 2% to ₹551 crore from ₹563 crore in Q4 last year. Why Profits Dropped? - CEO Neville Noronha said: 1. More competition in FMCG (daily-use products) reduced their profit margins. 2. They paid higher wages due to staff shortages. 3. They spent more on improving service and opening new stores. Margins Shrinking: • EBITDA Margin: Down to 6.4% from 7.4% • PAT Margin: Down to 3.7% from 4.4% Earnings per Share (EPS): - Down to ₹8.47 from ₹8.66 in Q4 last year. Full Year FY25 (April 2024–March 2025) Summary: • Total revenue: ₹59,358 crore (up from ₹50,789 crore) • Net profit: ₹2,707 crore (up from ₹2,536 crore) • EBITDA margin: 7.6% (down from 8.1%) (Earnings Before Interest, Taxes, Depreciation, and Amortization.) • PAT margin: 4.6% (down from 5.0%) (Profit After Tax) • EPS: ₹41.61 (up from ₹38.99) Store Performance: - Older DMart stores grew sales by 8.1% (less than last year’s 10.3%). Growth is mostly from more customer footfall. City-wise Growth: • Metro cities: steady but margins are weaker • Non-metro towns: better performance New CEO-designate Anshul Asawa joined in March 2025 and will take full charge in 4–5 months. Current CEO Neville Noronha will focus more on expansion and e-commerce. In the end, DMart is growing in sales but facing pressure on profits due to competition and rising costs. The company is investing in growth and improving customer experience.