Avenue Supermarts Ltd, which operates the retail chain DMart, on Saturday announced its fiscal third quarter earnings report with profit at Rs 723.72 crore, posting a growth of 4.79 per cent in comparison to Rs 690.61 crore recorded during the corresponding quarter of FY24. It posted revenue from operations at Rs 15,972.55 crore for the quarter in review. This was 17.68 per cent higher than Rs 13,572.47 crore reported during the third quarter of previous financial year. The company EBITDA stood at Rs 1,217 crore, as compared to Rs 1,120 crore in the corresponding quarter of last year. EBITDA margin stood at 7.6 per cent in Q3FY25.
Neville Noronha, CEO & Managing Director, Avenue Supermarts Limited, said, “Our revenue for Q3FY2025 grew by 17.5 per cent over the previous year. The Q3FY2025 same store revenue growth for 2 years and older stores was at 8.3 per cent. We continue to see increased intensity in discounting in the FMCG category and the consequent impact to high turnover per square feet stores in metro towns. However, this quarter the impact has relatively reduced versus the previous quarter (Q2FY2025).”
“We stay committed to being the most preferred value retailer to customers in the vicinity of a DMart store or a Fulfilment centre of DMart Ready,” he added. DMart Ready posted a growth of 21.5 per cent in 9 months FY25.
“In the rapidly evolving dynamics of the grocery e-commerce market, we are seeing significantly more demand for home delivery compared to pick-up point and hence we continue to align our business to that extent. Our home delivery business now far exceeds our pick-up point sales contribution. We will continue to provide both channels of delivery as an option to our shoppers in select towns. In several towns we now only operate ‘Home Delivery’ as a delivery channel,” Neville Noronha said.
For the nine month period, the hypermarket chain operator posted revenue at Rs 44,486 crore as against Rs 38,062 crore in the same period last year. Net profit stood at Rs 2,157 crore for 9MFY25. The company EBITDA for the period stood at Rs 3,532 crore as compared to Rs 3,160 crore during 9MFY24.
Leadership transition
Avenue Supermarts Limited also announced that Neville Noronha will not be offering his candidature for renewal of his role as the Managing Director and CEO at the conclusion of his current term in January 2026 – a year from now. The Board has appointed Anshul Asawa as the CEO Designate, effective March 15th, 2025. In a regulatory filing, the company said, “The Board of Directors, based on recommendation of the Nomination and Remuneration Committee, approved appointment of Mr. Anshul Asawa as a Chief Executive Officer Designate and Senior Managerial Personnel of the Company with effect from 15th March, 2025.”
Ignatius Navil Noronha will complete his current term of 5 years as the Managing Director of the Company on 31st January, 2026. Asawa will succeed him taking on full responsibilities as Managing Director & CEO with effect from 1st February, 2026. Neville Noronha will support Anshul Asawa for a smooth transition over the next year as the latter joins the company in March, 2025.
Neville Noronha had joined DMart in January 2004. Under Neville’s stewardship, DMart said, it has reached milestones, including surpassing the Rs 50,000 crore annual turnover mark and growing from 5 stores, when he had joined the company, to more than 380 stores now.
CB Bhave, Chairman of the Board of Directors, Avenue Supermarts Limited, said, “I would like to place on record my appreciation of Neville’s vision and hard work in building the company to this scale today. He has demonstrated exceptional leadership skills and dedication in his remarkably successful tenure. A leader who saw the big picture but never lost the eye for detail, Neville made sure that growth and profits were not ends in themselves, rather they were the by-products of efficiency, fairness and customer value. The entire Board of the Company joins me in this sentiment.”
Meanwhile, Anshul Asawa, an IIT Roorkee and IIM Lucknow alumnus, will be joining DMart after a 30-year long stint at Unilever where he had leadership roles overseeing the growth of product categories and developing impactful functions in India, Asia, and Europe. He currently serves as Country Head of Unilever in Thailand and General Manager for the Home Care business unit in Greater Asia.
Furthermore, the Board of Directors have also approved below changes in Senior Management Personnel of the Company, effective 11th January, 2025:
a) Appointment of Hitesh Shah, Vice President-Category (FMCG) as Head-Pharma Business to oversee the pharmacy business,
b) Appointment of Rajeev Chandrasekharan, General Manager – DC as Head-Centre of Excellence to oversee the process audit function of the Company,
c) Change in role of Ashutosh Dhar as Head-Loss Prevention.