Mumbai-based DMart reports a consolidated net profit of Rs 724 crore for the October-December period, with a 4.8% increase over the same period last year. While the revenue growth of 17.7% meets market expectations, the net profit falls short of analysts' estimates. The company's quarterly earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at Rs 1,218 crore, representing an 8.8% year-on-year increase, but with a margin decrease of 60 basis points. DMart CEO Neville Noronha cites increased competition and discounting in the FMCG category as the reason for the margin decline and remains committed to providing value to customers through their retail and fulfillment centers. The market's reaction to the quarterly numbers will be closely watched on Monday.
DMart Q3 Results: Profit Growth Lags Expectations Amid Competitive Pressures
Mumbai-based DMart, a leading supermarket chain in India, has reported a mixed bag of results for the October-December quarter (Q3) of fiscal year 2023-24.
Financial Performance
DMart's consolidated net profit for Q3 stood at Rs 724 crore, up 4.8% year-over-year. However, it fell short of analysts' estimates. Revenue rose by 17.7% to Rs 10,568 crore.
The company's EBITDA grew by 8.8% to Rs 1,218 crore, but the margin declined by 60 basis points to 11.5%. DMart CEO Neville Noronha attributed the margin decline to increased competition and discounting in the fast-moving consumer goods (FMCG) category.
Background
DMart is known for its low-cost retail model and its focus on groceries, household essentials, and apparel. The company has been expanding rapidly in recent years, opening new stores in both urban and rural areas.
Market Reaction
Analysts and investors were cautiously optimistic about the results, noting the revenue growth but expressing concerns about the margin decline. The market's reaction to the quarterly numbers will be closely watched on Monday, when the stock market opens.
Top 5 FAQs
1. Why did DMart's net profit growth lag expectations?
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