Avenue Supermarts DMart , the parent company of DMart retail chain, has announced the complete utilization of its Qualified Institutional Placement (QIP) proceeds as of March 31, 2024. The company confirmed that there were no deviations from the original stated objectives for the funds raised.

QIP Proceeds and Utilization

The retail giant successfully raised Rs. 4,078.00 crores (net of QIP expenses) through the placement. The funds were earmarked for various strategic purposes, including:

• Augmenting long-term resources for future expansion
• Store network growth
• Enhancing supply chain efficiency
• Warehousing improvements
• Land acquisition
• General corporate purposes
• Working capital requirements
• Strategic investments and acquisitions
• Repayment of outstanding debt

Compliance and Reporting

Ashu Gupta, the Company Secretary of Avenue Supermarts, submitted a NIL deviation statement for the quarter ended March 31, 2024. This statement confirms that the company has adhered to its commitment and utilized the funds as initially planned, without any alterations to the stated objectives.

Significance of the Announcement

The full utilization of QIP proceeds and the absence of any deviations underscore Avenue Supermarts' commitment to transparency and efficient capital allocation. This development is likely to be viewed positively by investors and stakeholders, as it demonstrates the company's ability to execute its growth plans and strategic initiatives as outlined during the QIP.

The successful deployment of funds across various areas of the business, including expansion, supply chain improvements, and potential strategic acquisitions, positions Avenue Supermarts to strengthen its market presence and operational efficiency in the competitive retail sector.

As the retail landscape continues to evolve, the strategic use of these funds may play a crucial role in DMart's future growth trajectory and its ability to meet the changing demands of the Indian consumer market.

Avenue Supermarts DMart , the operator of D-Mart stores, has announced strong financial results for the third quarter of fiscal year 2025, along with a significant leadership change.

Financial Performance

The company reported a robust standalone total revenue of Rs. 15,565.00 crore for Q3FY25, representing a 17.5% year-on-year growth. The standalone profit after tax (PAT) saw an increase of 6.5%, reaching Rs. 785.00 crore. Additionally, the company's EBITDA grew by 10.2% to Rs. 1,235.00 crore.

However, despite the growth in absolute numbers, the company experienced some margin pressure:

For the nine-month period, Avenue Supermarts achieved a total revenue of Rs. 43,327.00 crore, marking a 16.7% growth compared to the same period in the previous year.

Expansion and Business Update

The company continued its expansion strategy, adding 10 new stores in Q3FY25. For the nine-month period, a total of 22 new stores were opened, indicating steady growth in the company's retail footprint.

DMart Ready, the company's home delivery business, showed strong performance with a 21.5% growth in the nine-month period.

Market Dynamics

CEO Neville Noronha commented on the market conditions, noting that there was continued discounting pressure in the FMCG category, particularly affecting metro stores. However, he observed that the impact had reduced compared to the previous quarter, suggesting a potential easing of competitive pressures.

Leadership Transition

In a significant announcement, CEO Neville Noronha revealed that he will not seek renewal of his contract when his term ends in January 2026. To ensure a smooth transition, the board has appointed Anshul Asawa as CEO Designate, effective March 15, 2025. Asawa, currently serving as the Country Head of Unilever Thailand, brings valuable FMCG industry experience to the role.

This leadership change marks a new chapter for Avenue Supermarts and will be closely watched by investors and industry observers for its potential impact on the company's future strategy and performance.

The company's ability to maintain strong revenue growth despite margin pressures and its proactive approach to leadership succession demonstrate its resilience and forward-thinking management in the competitive retail sector.