Detailed Narrative
Solid FY24 Revenue Growth with Margin Moderation
DMart standalone revenue grew 18.4% to ₹49,533 Crore with EBITDA margin of 8.3%. Gross margin declined 37bps from competitive FMCG pricing and mix shift toward lower-margin food categories. PAT of ₹2,695 Crore grew 5.4% (12% excluding prior year tax gain). Revenue per sq ft at ₹33,000, back to FY20 pre-COVID levels.
Store Expansion Steady at 41 with 40-50 Per Year Guidance
Opened 41 stores in FY24 adding 1.8 million sq ft. Guided 40-50 stores for FY25. Long-term aspiration is 10-15% of store base annually. Cluster-based expansion prioritizing existing markets. GMA contribution stabilizing around 23%, down from pre-COVID 27-28%.
DMart Ready in Consolidation Mode
E-commerce grew 31.7% but this was a deliberate 'year of consolidation' with only one new city added (now 24 cities). Losses at ₹185 Crore. Management focused on fixing model, improving throughputs, and transitioning from pickup to home delivery model.
Return Ratios Strong but Moderating
ROCE at 19.1% and RONW at 15.1%, marginally lower than FY23. Fixed asset turnover at 3.6x close to pre-COVID levels. Inventory at 29 days and payables at 7.1 days. Balance sheet remains debt-free (excluding Ind AS 116 lease liabilities). Equity base ₹19,281 Crore.