Avenue Supermarts DMart , the parent company of DMart, is expected to report its Q1 FY24 results on July 14, with analysts projecting a mixed performance amidst growing competitive pressures. The retail giant, known for its value-for-money supermarkets, faces challenges in maintaining its growth trajectory in an increasingly competitive market landscape.

Revenue Growth and Profitability

According to consensus estimates, DMart is projected to deliver a 17.80% year-on-year (YoY) revenue growth, reaching Rs 16,583.00 crore for the quarter. This growth, while substantial, reflects the ongoing challenges in the retail sector.

On the profitability front, the company is expected to see an 11.00% increase in Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA), amounting to Rs 1,354.00 crore. Net profit is anticipated to rise by 14.00% to Rs 883.00 crore.

Margin Pressure and Competition

Analysts have expressed concerns about potential margin pressure for DMart. The retail sector is witnessing intensifying competition, particularly from quick commerce players who are rapidly gaining market share. This evolving competitive landscape could impact DMart's ability to maintain its historical growth rates and profit margins.

Outlook

As DMart navigates through these challenges, investors and market watchers will be keenly observing how the company adapts its strategies to counter the growing competition. The upcoming results will provide crucial insights into DMart's performance and its ability to maintain its strong position in India's retail market.

The Q1 FY24 results, scheduled for release on July 14, will offer a clearer picture of DMart's current standing and its strategies for addressing the evolving market dynamics. Stakeholders will be looking for indications of how the company plans to sustain its growth trajectory and defend its market position in the face of increasing competition from quick commerce players.

Avenue Supermarts DMart , the parent company of DMart retail chain, has reported a robust start to the fiscal year with significant revenue growth and continued expansion of its store network.

Revenue Growth

Avenue Supermarts announced a substantial 16% year-over-year increase in standalone revenue for the first quarter. The company's revenue reached Rs 15,932.12 crore, marking a strong performance in the retail sector.

Store Expansion

The company continues to demonstrate its commitment to growth through strategic expansion:

• Total store count now stands at 424

Market Response

Despite the strong revenue growth, global brokerages maintain a mixed stance on the company:

• Goldman Sachs retains a sell rating
• Macquarie rates the stock as underperform
• CLSA maintains an outperform rating

Stock Performance

Following the announcement, Avenue Supermarts' stock fell 3.03% to Rs 4,258.95 on the BSE.

Outlook

The strong revenue growth indicates Avenue Supermarts' resilience and strategic focus on capturing a larger share of the Indian retail market. However, the mixed reactions from global brokerages suggest that investors should carefully consider various factors before making investment decisions.

As Avenue Supermarts continues to expand its footprint, it will be interesting to observe how this growth translates into market share and profitability in the coming quarters.