Devyani International's Q3 net profit grows to Rs 71.03 crore, up 7.6%

Quick service restaurant operator Devyani International Ltd on Thursday reported a 7.63 per cent rise in consolidated net profit to Rs 71.03 crore for the third quarter ended December 2022.

Devyani International, the biggest franchisee of Yum Brands in India that operates brands such as Pizza Hut and KFC, had a net profit of Rs 65.99 crore in the same period the previous year.

Devyani International Ltd (DIL) reported a 26.61% increase in their revenue from operations during the third quarter of the current fiscal year, reaching Rs 790.59 crore compared to the previous year's figure of Rs 624.42 crore, according to a regulatory filing.

According to DIL's earnings statement, the rise in revenue was due to a sustained strong increase in the number of store additions and growth in volume, which helped to drive the performance.

The total expenses of DIL during the latest quarter saw a year-on-year increase of 29.02%, reaching Rs 725.10 crore.

According to the company, they maintained their momentum in adding new stores by opening 81 net new stores in the third quarter of the fiscal year 2023, bringing their total number of stores to 1,177 as of December 31st, 2022.

As of December 2022, the company was operating 103 stores of Costa Coffee.

In addition to its operations in India, DIL also manages 36 KFC stores in Nigeria and a combined total of 21 KFC and Pizza Hut stores in Nepal.

“Innovation continues to play a crucial role in their growth strategy for all the brands within their portfolio” said, Ravi Jaipuria, Chairman of DIL.

He also stated that the company remains optimistic about their brands and the Indian market, despite a temporary slowdown in consumer demand. He believes that once inflation stabilizes, consumer spending will pick up, which will positively impact their businesses.

In the meantime, Jaipuria stated that the company will stay focused on improving their processes, ensuring product quality, and refining their execution abilities.

The shares of DIL ended the day at Rs 159.25 per share on BSE, which was a 0.25% increase from the previous close.