Analysts attribute the optimistic outlook to rising revenue per square foot and the steady expansion of DMart’s store network.
The company’s revenue growth is expected to hit 18% year-on-year, bolstered by inflationary pressures and the strategic addition of new stores.
“We anticipate a slight uptick in general merchandise sales as consumer sentiment improves, driving higher revenue per square foot,” noted a stock broking firm.
This reversal underscores a strategic shift that aligns revenue per store growth more closely with revenue per square foot metrics.
This scrutiny includes assessing the evolving dynamics between revenue per store and revenue per square foot metrics.
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Avenue Supermarts, led by Rakesh Damani, is poised to release its first-quarter fiscal year 2025 earnings report, with expectations of robust performance driven by heightened footfalls and expanded store presence.
Rakesh Damani-led Avenue Supermarts (DMart) is gearing up to unveil its financial results for the first quarter of FY25, anticipated to reflect a 17.5% year-on-year revenue increase to Rs 13,938 crore. Net profit is projected to surge by 21% from Rs 659 crore in the same quarter last fiscal to Rs 798 crore, underpinned by strong operational metrics.
Analysts attribute the optimistic outlook to rising revenue per square foot and the steady expansion of DMart’s store network. The company’s revenue growth is expected to hit 18% year-on-year, bolstered by inflationary pressures and the strategic addition of new stores.
“We anticipate a slight uptick in general merchandise sales as consumer sentiment improves, driving higher revenue per square foot,” noted a stock broking firm.
In the past year, DMart has witnessed an upward trend in revenue per square foot, reversing a previous period of subdued performance attributed to large-store additions and tepid discretionary spending. This reversal underscores a strategic shift that aligns revenue per store growth more closely with revenue per square foot metrics.
During the quarter under review, Avenue Supermarts expanded its footprint by opening six new stores, bringing its nationwide total to 371 stores. This follows the addition of 24 stores in the previous quarter and underscores the company’s aggressive expansion strategy.
Gross margins are anticipated to remain stable, with a notable contribution from the high-margin general merchandise and apparel segment (GM&A). Analysts forecast a gross margin of 14.6%, consistent with Q1FY24, yet slightly lower than the pre-Covid Q1 average of 15.7%.
Market watchers will closely scrutinize DMart’s Same Store Sales Growth (SSSG) and monitor shifts in revenue per square foot, evaluating trends that may impact future earnings. This scrutiny includes assessing the evolving dynamics between revenue per store and revenue per square foot metrics.
As DMart prepares to disclose its quarterly results, industry experts are poised to gauge the retailer’s performance against these anticipated growth drivers, reflecting both operational resilience and strategic expansion efforts in a competitive retail landscape.
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