On Friday, Devyani International reported a significant 84% decrease in its net profit for the June 2023 quarter, amounting to INR 11.75 crore. This is in stark contrast to the INR 73.84 crore profit the company had reported in the same period the previous year.
The revenue from operations in the April-June quarter of FY23 reached INR 846.63 crore, indicating a substantial 20% year-on-year (YoY) growth. This compares to the INR 704.72 crore revenue achieved in the corresponding period of the previous year.
The decrease in net profit was driven by a significant 24% increase in total expenses, which amounted to INR 793.16 crore in Q1FY24. This is in contrast to the total expenses of INR 636.58 crore recorded in the corresponding quarter of the previous financial year.
The company reported a 12% increase in sales quarter-on-quarter (QoQ) in its filing to the exchanges. According to the filing, the core brands, namely KFC (INR 516 crore, 16% QoQ), Pizza Hut (INR 184 crore, 8% QoQ), and Costa Coffee (INR 32 crore, -2% QoQ), maintained stable revenues during the mentioned quarter.
The EBITDA increased 14.6% to INR 173.4 crore, which was up 14.6% QoQ. This resulted in an EBITDA margin of 20.5%, with a profit before tax (PBT) of INR 13 crore. “The consolidated PBT got impacted because of significant currency devaluation in Nigeria.
After normalization, the Profit Before Tax (PBT) amounted to INR 60.3 crore for the quarter, in comparison to INR 41.2 crore in the previous quarter.
“I am pleased to share that we have started the new fiscal year on a healthy note, despite facing challenges from a difficult macro environment and depressed consumer spending. We are going to be opening 275 to 300 stores during the current fiscal year, as we continue working towards our ambitious target of reaching 2,000 stores by 2026,” a media statement said, quoting Ravi Jaipuria, Non-Executive Chairman of Devyani International.
On Vaango, its south Indian cuisine brand, Jaipuria said that it was shaping up well with 52 stores.
Post announcement, shares of the company fell nearly 4% to INR 186.
