Avenue Supermarts Q2 Results Review- Lower Growth, Higher Cost Of Retailing Drive Earnings Miss: Motilal Oswal

The company's revenue growth remains dependent on its ability to add store area, says the brokerage.

Various brand of oil products kept on shelves inside a DMart store. (Photo: Vijay Sartape/NDTV Profit)

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Motilal Oswal Report

Avenue Supermarts Ltd. reported weak results in Q2 FY25 as consolidated revenue growth moderated to 14% YoY (from 19% YoY in Q1) with modest Ebitda growth of 9% YoY (7% miss) due to the higher cost of retailing.  D-Mart management indicated that the impact of online grocery formats was clearly visible, especially on large metro D-Mart stores that operate at a very high turnover per store.

D-Mart reported a moderation in like-for-like growth for two plus year old stores to 7.5% in H1 FY25, with a sharp moderation to ~5.5% in Q2 (versus ~10% in FY24).

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Motilal Oswal Avenue Supermarts Q2 FY25 Results Review.pdf
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Also Read: Avenue Supermarts Earns Lesser Per Unit Sold

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