Competition pushes DMart to keep prices down; margins to take hit

Losing to win, the DMart way

Avenue Supermarts, operator of the DMart chain of stores in India, saw its margins contract for the third straight quarter when it reported its March Quarter (Q4) results last week. 

This came even as revenue and profit growth surged 32 per cent and 21 per cent year-on-year, respectively. 

At 7.5 per cent, earnings before interest, tax, depreciation and amortisation (Ebitda) margins in Q4 were the lowest in three quarters, pointing to pricing pressure that the retailer is seeing. 

“Competitive intensity from organised retailers as well as e-commerce players has only grown in the last few quarters. This is weighing down on both gross