Avenue Supermarts Ltd, the operator of retail giant DMart, saw its shares climb over 10% during Friday’s trading session after reporting an impressive 17.5% increase in revenue for the third quarter of FY 2024-25.
The company’s standalone revenue from operations rose to ₹15,565.23 crore, up from Rs.13,247 crore in the same period last year. By 1 PM IST, Avenue Supermarts’ shares were trading at Rs.4,024.50, marking an increase of 406.75 points or 11.24%.
This growth came in stark contrast to the broader market performance, as the benchmark BSE Sensex dropped 434.70 points (0.54%) to 79,509.01, and the NSE Nifty declined 94.95 points (0.39%) to 24,093.70.
Despite the positive revenue report, international brokerages like Macquarie and Morgan Stanley remained cautious. Morgan Stanley noted that the revenue increase was 1% above expectations, while same-store sales growth (SSSG) hit 5.5%, surpassing the 4% estimate. However, Macquarie highlighted the competitive threat posed by the growing quick-commerce segment.
In the second quarter of FY 2024-25, Avenue Supermarts reported a 5.8% year-on-year increase in net profit, reaching ₹659.6 crore, compared to Rs.623.6 crore in the previous year. Revenue for the same quarter rose by 14.4% YoY, totaling Rs.14,444.5 crore compared to Rss.12,624.4 crore a year earlier.
The impressive revenue growth underscores DMart’s strong operational performance, although market analysts continue to express caution regarding potential challenges in the evolving retail landscape.
