DMart Q3FY25 preview: PAT likely to grow over 20%, margins likely to remain stable
Avenue Supermarts- the parent company of Diversified Retail chain DMart will release its third quarter results for the ongoing financial year 2024-2025 on January 11 (Saturday). Zee Business Research estimates that the consolidated profit after tax or PAT during the review period will increase by 20.4 percent to Rs 832 crore compared to Rs 691 crore in the same period last year.
Revenue from supermarkets was also seen rising 15.6 percent year-on-year (YoY) to Rs 15,683 crore compared to Rs 13,572 crore in Q3FY24. Further, analysts expect the company to report Rs 1,290 crore in EBITDA or Earnings Before Interest, Taxes, Depreciation, and Amortization. EBITDA is a financial ratio used to assess a company’s financial health and profitability.
However, Margin is expected to remain tight at 8.2 percent during the October-December quarter due to increase in operating expenses and decline in net income.
Operating income
Zee Business analysts forecast operating income during the reporting quarter to rise to Rs 15,565 crore amid the festive season and high discounts. The number of retail stores as of December 31, 2024 has increased to 387.
Same store sales growth or SSSG is expected to come in at 6 percent in the review period. SSSG is a metric that helps determine a retailer’s sales growth or decline over a period of time.
An important observation
Investors will be closely watching the company’s plans for quick trade (QC) and store expansion.
DMart share price performance
Over the past one year, the stock has underperformed with a negative return of 3 percent. Finally, the stock ahead of tomorrow’s Q3 results traded 3 percent lower at Rs 3,703 apiece on the BSE.
