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Tag: FY25 financial performance

  • DMart’s Q3 shows 17.7 per cent uptick in revenue growth; Profits struggle

    DMart’s Q3 shows 17.7 per cent uptick in revenue growth; Profits struggle

    MUMBAI: In a bustling FMCG retail landscape, where affordability meets aspiration, DMart emerges as the champion for value-conscious shoppers. Much like a modern-day Spiderman swinging through a web of rising costs and fierce competition, DMart’s Q3 FY25 results reveal its unwavering commitment to delivering affordability.

    The results, unveiled on 11 January 2025, showcase a robust revenue growth trajectory, driven by the brand’s steadfast focus on cost-effective retailing and operational efficiency.

    Yet, beneath the surface of this success lies a battle with tightening profit margins—a challenge that highlights the resilience and strategic adaptability of this retail giant in an increasingly competitive arena.

    As DMart continues to redefine FMCG retail with its unbeatable value-for-money offerings, the Q3 results provide a lens into how it balances growth aspirations with the pressures of a rapidly evolving market.

    This is the story of a retailer that, much like a superhero, delivers hope to neighbourhoods while navigating the complexities of its mission.

    DMart’s consolidated revenue from operations climbed to Rs 15,972.55 crore in Q3 FY25, marking a 17.7 per cent increase compared to Rs 13,572.47 crore in Q3 FY24. For the nine months ending 31 December 2024, revenue surged by 16.9 per cent, reaching Rs 44,486.19 crore compared to Rs 38,062.28 crore during the same period last year. This growth was driven by a combination of new store openings and robust demand in core categories.

    However, other income declined to Rs 24.14 crore in Q3 FY25 from Rs 32.92 crore in Q3 FY24, suggesting subdued performance in ancillary revenue streams.

    Despite the revenue upswing, DMart’s consolidated net profit for Q3 FY25 fell to Rs 723.54 crore, a 4.9 per cent decrease from Rs 759.44 crore in Q3 FY24.

    The nine-month net profit stood at Rs 2,156.66 crore, reflecting a marginal growth of 0.4 per cent from Rs 2,147.12 crore during the same period last year.

    Margins remained under strain, with the EBITDA margin compressing due to higher costs in employee benefits (up by 30.1 per cent YoY to Rs 304.83 crore) and depreciation (up 20.4 per cent YoY to Rs 228.12 crore).

    DMart’s purchase of stock-in-trade for Q3 FY25 escalated to Rs 13,376.72 crore, an 18 per cent rise from Rs 11,330.93 crore in Q3 FY24, aligning with its expansion strategy. However, changes in inventory of stock-in-trade presented a marginal increase, indicating effective inventory control amidst fluctuating demand.

    The company also reported a contingent liability of Rs 235.98 crore under the Goods and Service Tax Act, reflecting ongoing regulatory challenges.

    DMart’s robust revenue trajectory signals strength in its core retail operations. However, declining profit margins highlight the need for cost optimisation and operational efficiency. The company’s cautious approach to expansion and investment in digital initiatives will be crucial in navigating market challenges and enhancing shareholder value.

  • Birla Cable’s Q2 FY25: Profit slump despite revenue growth

    Birla Cable’s Q2 FY25: Profit slump despite revenue growth

    Mumbai: In the post-pandemic world, where homes turned into workspaces and streaming hubs, ultra-fast internet became a lifeline, tethering us to a digital reality. But behind those seamless connections lies the backbone of fibre optic networks, powered by companies like Birla Cable. Yet, even as the demand for digital infrastructure surges, Birla Cable finds itself navigating choppy waters. The company’s Q2 FY25 financial results, released on October 24, show revenue climbing, but rising operational costs have squeezed profits, casting a shadow over an otherwise bright sector.

    For Q2 FY25, Birla Cable reported a standalone revenue from operations of Rs 18,171.67 lakh, reflecting a 4 per cent year-over-year increase from Rs 17,470.86 lakh in Q2 FY24. Consolidated revenue also improved, reaching Rs 18,274.92 lakh, up from Rs 17,761.15 lakh in the same quarter last year. This proliferation in revenue, while encouraging, wasn’t sufficient to shield the company’s profit from erosion due to escalating costs.

    Net profit for the quarter plummeted drastically to Rs 200.49 lakh on a standalone basis—a 62 per cent dip compared to Rs 529.80 lakh in Q2 FY24. The consolidated profit mirrored this trend, declining to Rs 181.97 lakh from Rs 504.65 lakh the previous year. The profit drop was intensified by rising raw material costs, which reached Rs 14,426.19 lakh for standalone operations—a 5.7 per cent increase from the preceding quarter.

    Operational costs across the board contributed to the decline in profitability. Total expenses rose to Rs 18,013.94 lakh, a significant jump from Rs 17,060.28 lakh in Q2 FY24. Employee expenses stayed steady at approximately Rs 840 lakh, while finance costs soared to Rs 395.05 lakh from Rs 327.87 lakh in the previous year. Depreciation expenses added further strain, climbing to Rs 383.01 lakh, indicating investments in infrastructure that are yet to yield returns.

    One bright spot was the other comprehensive income (OCI), which surged to Rs 1,683.36 lakh from Rs 661.69 lakh in the prior year on a standalone basis. However, this gain primarily reflected revaluations in investment portfolios and other non-core elements, which have limited impact on operational performance.

    The cash flow statement shows a decline in cash and cash equivalents to Rs 10.19 lakh by the end of Q2, a stark reduction from Rs 23.30 lakh in the same period last year. This drop stems from increased operating expenses and reduced cash generation, with net cash flow from operating activities down to Rs 5,082.14 lakh. This cash compression hints at tighter liquidity, potentially influencing the company’s future capital expenditures.

    Birla Cable’s Q2 FY25 financial results underscore a revenue-positive but profit-challenged quarter, reflecting the complex interplay of market demand and rising costs. As a leader in India’s cable manufacturing sector, Birla Cable’s future profitability will likely depend on its capacity to manage costs amidst fluctuating raw material prices and financial expenses. While revenue growth suggests demand resilience, sustaining profitability will require cost discipline and a favourable macroeconomic environment.