Detailed Narrative
Post-COVID Recovery Complete with Record Store Expansion
DMart added a record 50 stores in FY22, expanding by 2.7 million sq ft. Revenue, EBITDA and PAT fully recovered to normal levels. Customer behavior showed lasting COVID changes - higher average bill values persisting, which management called 'very, very good for us' from an operational efficiency standpoint with less crowd and more revenue.
E-Commerce Confidence Inflection Point
DMart Ready more than doubled revenue and expanded to 12 cities. This was a turning point in management confidence - previously anxious about capital intensity, Neville stated 'those problems are of the past.' The business model proved scalable with costs under control, though profitability remained uncertain. No plans for quick commerce; focus on next-day delivery in DMart's own model.
Larger Stores Strategy for Future Growth
Revenue per sq ft remained flat due to intentionally larger stores, but management was unconcerned given the ownership model (vs rental). Larger stores provide headroom for future growth as categories expand and store throughput increases. Inventory days returned to pre-COVID levels showing strong assortment management and buying team execution.
GMA Recovery and Cohort-Based Store Performance
GMA contribution was recovering but still below 27-28% pre-COVID levels, with mass discretionary spending under stress. Management revealed their key performance framework: age-based cohort analysis where the only material reason for underperformance is self-cannibalization from new DMart stores nearby. Store LFL growth targets are simply 'at least inflation rate' for older stores.