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#### Key Highlights:
1. *Revenue Growth:* Revenue increased significantly by 18.4% YoY, reflecting strong sales performance. Inline with the trend.
2. *Profitability:* Both EBITDA and PAT showed healthy growth of 17.8% and 16.8% respectively. Better than the trend.
3. *Store Expansion:* The company added 6 new stores during the quarter, taking the total count to 371. In line with the trend.
4. *Margins:* EBITDA margin stood steady at 8.9% for standalone and 8.7% for consolidated, same as the previous year. Better and improved v/s last year.
5. *Operational Efficiency:* The company continues to follow its EDLC-EDLP strategy, ensuring competitive pricing and operational efficiency. Better and improved v/s last year.
#### Segment Growth:
- *General Merchandise and Apparel:* These segments saw improved contributions, leading to better gross margins.
#### Important Financial Ratios:
- *EBITDA Margin:* 8.9% (Standalone), 8.7% (Consolidated)
- *PAT Margin:* 5.9% (Standalone), 5.5% (Consolidated), Better and improved v/s last year.
- *Basic EPS:* ₹12.49 (Standalone), ₹11.89 (Consolidated)
#### Company Overview:
Avenue Supermarts Limited, operating under the brand name D-Mart, is a national supermarket chain offering a wide range of products including groceries, dairy, frozen foods, personal care, home care, bed and bath, crockery, footwear, toys, games, and apparel. Established in 2002, the company has a robust presence with 371 stores across various states in India.
#### Peer Group Comparison:
D-Mart's key competitors in the retail sector include:
- *Reliance Retail:* With a vast network and diversified product range, it is one of the largest retail chains in India.
- *Future Retail:* Known for its Big Bazaar stores, Future Retail also competes in the hypermarket segment.
- *Spencer's Retail:* Operates a chain of supermarkets and hypermarkets.
In comparison, D-Mart maintains a strong focus on its EDLC-EDLP strategy, contributing to its competitive pricing and operational efficiency.
#### Industry Outlook:
The retail industry in India is poised for significant growth, driven by increasing consumer spending, urbanization, and expansion of organized retail. The sector is expected to benefit from:
- *Rising Middle Class:* Increased disposable incomes are likely to drive higher spending on retail goods.
- *Digital Transformation:* Adoption of e-commerce and digital payment solutions are transforming the retail landscape.
- *Expansion into Tier II and III Cities:* Retail chains are expanding their footprint into smaller cities, tapping into the growing consumer base.
#### Future Outlook for D-Mart:
D-Mart's continued focus on efficient operations, competitive pricing, and store expansions positions it well to capture the growing retail market in India. The company's strategy to enhance service levels and build future capabilities indicates a strong commitment to sustaining growth and profitability.
#### Conclusion:
D-Mart's Q1 FY24 results reflect robust financial performance with significant & inline growth in revenue, but point to focus is profitability as it was not good last year but we saw improvement in Q1_fy25, as well as store count also in line expansion. The company's efficient operational strategy and focus on expansion provide a strong foundation for continued success in the competitive retail market.
