Devyani International Q1 PAT Plunges 84% YoY to Rs 12 Crore
Devyani International Q1 PAT Plunges 84% YoY to Rs 12 Crore

Devyani International recorded a significant 84% drop in net profit for the June 2023 quarter, with earnings amounting to Rs 11.75 crore compared to the Rs 73.84 crore profit reported in the same period last year.

The company's revenue from operations for the April-June quarter of FY23 showed a substantial 20% year-on-year (YoY) increase, reaching Rs 846.63 crore compared to Rs 704.72 crore in the same period last year.

The decrease in net profit was attributed to a significant increase of over 24% in total expenses, which amounted to Rs 793.16 crore during Q1FY24, as opposed to Rs 636.58 crore in the corresponding quarter of the previous fiscal year.

The company reported a 12% increase in sales compared to the previous quarter. In its filing to the exchanges, Devyani International stated that its core brands, namely KFC (with revenues of Rs 516 crore, showing a 16% QoQ increase), Pizza Hut (with revenues of Rs 184 crore, showing an 8% QoQ increase), and Costa Coffee (with revenues of Rs 32 crore, showing a slight decline of 2% QoQ), demonstrated stable revenue performance during the same quarter.

Ravi Jaipuria, Non-Executive Chairman of Devyani International, expressed satisfaction in commencing the new fiscal year on a positive note, even in the face of challenges from a challenging macro environment and reduced consumer spending. The company plans to open 275 to 300 stores in the current fiscal year, aiming to achieve its ambitious goal of reaching 2,000 stores by 2026.

The EBITDA witnessed a 14.6% growth, reaching Rs 173.4 crore, which was also up 14.6% compared to the previous quarter. Consequently, the EBITDA margin reached 20.5%, and the profit before tax (PBT) stood at Rs 13 crore.

The overall PBT for the company was affected due to the substantial currency devaluation in Nigeria.

After normalization, the profit before tax (PBT) amounted to Rs 60.3 crore in the quarter, showing a notable increase from Rs 41.2 crore in the previous quarter.

Regarding Vaango, their south Indian cuisine brand, Jaipuria mentioned that it is progressing positively, with 52 stores currently in operation.

Following the announcement, the company's shares experienced a decline of approximately 4%, settling at Rs 186.


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