Avenue Supermarts will acquire a 26% stake in FP Ampere Energy Pvt. Ltd.

DMart is a chain of one-stop supermarkets that seeks to provide consumers with a large selection of essential personal and home goods under one roof. Every DMart store carries a wide range of home utility products, which our customers find affordable. These products include food, cosmetics, clothing, kitchenware, bed and bath linens, and appliances. Providing customers with high-quality products at competitive prices is our main goal. Mr. Radhakishan Damani and his family founded DMart in order to meet the expanding needs of the Indian family. DMart has a well-established presence in 375 locations throughout Maharashtra, Gujarat, Andhra Pradesh, Madhya Pradesh, Karnataka, Telangana, Chhattisgarh, NCR, Tamil Nadu, Punjab, and Rajasthan since the opening of its first store in Powai in 2002. Our company is growing, and we have plans to open new stores in more cities as we work to be the most affordable retailer in the areas we serve. Avenue Supermarts Ltd. (ASL) is the owner and operator of the DMart supermarket chain. 

Avenue Supermarts will buy FP Ampere Energy for a 26% share:

Avenue Supermarts has signed transaction documents to purchase a 26% ownership position in FP Ampere Energy’s equity share capital (FPAEPL). The aforementioned transaction is contingent upon the fulfillment of several terms and conditions outlined in the transaction documents. In order to maintain captive status in accordance with the Electricity Act and Rules thereunder, the company will purchase and hold a 26% equity stake in FPAEPL for the duration of the project in order to increase the consumption of power derived from renewable sources.

Performance of Avenue Supermarts in Q2 of FY25:

The company’s standalone operating revenue in Q2 FY25 was Rs 14,050.32 crore, up more than 14% from Rs 12,307.72 crore in the corresponding quarter of FY24. DMart reported Q2 FY23 revenues of Rs 10,384.66 crore, while Q2 FY22 revenues were Rs 7,649.64. There were 377 stores overall as of September 30, 2024. The June quarter (Q1 FY25) profit for DMart climbed 17.5% year over year to Rs 773.7 crore, primarily due to improved sales of general merchandise and clothing. 

A year ago, in April through June, the company reported a net profit of Rs 658.7 crore (Q1 FY24). The operator of a grocery chain saw a nearly 19% YoY increase in operating revenue to Rs 14,069.1 crore in the first quarter of FY25. By contrast, Q1 FY24 brought in Rs 11,865.4 crore. The total expenses for the June quarter increased by 18.6% to Rs 13,056.61 crore. At the same time, total revenue increased 18.5% YoY to Rs 14,110.74 crore.

Stock of Avenue Supermarts Ltd. slightly corrected:

The stock of Avenue Supermarts Ltd. is currently trading at Rs. 4,536.00 per share, slightly lower than its intraday high of Rs. 4,619.90.

Conclusion: By acquiring a 26% stake in FPAEPL, Avenue Supermarts Ltd. is initiating a new chapter in the company’s history by increasing its use of power derived from renewable sources.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.