Yum! Restaurants (India) Reports Rs 162.04 Cr Profit in FY24

Yum! Restaurants (India), the operator of quick-service restaurant (QSR) brands such as Pizza Hut and KFC, reported a profit of Rs 162.04 crore for the financial year ending March 31, 2024. The company’s revenue from operations rose by 6.6 percent to Rs 689.93 crore, according to a Registrar of Companies (RoC) filing.  

The company’s total income increased by 13.4 percent to Rs 832.05 crore, driven by gains from the sale of its investment in Devyani International Ltd. Other income stood at Rs 142.11 crore for FY24, up from Rs 86.46 crore in the previous year.  

Yum! Restaurants (India) had reported a loss of Rs 108.17 crore in FY23, with revenue from operations at Rs 647.34 crore during that period.  

The company’s advertising and promotional expenses were reduced by 3.8 percent to Rs 220.69 crore in FY24, while royalty expenses rose by 14 percent to Rs 175.10 crore, compared to Rs 153.67 crore in FY23. Total expenses decreased by 22.16 percent to Rs 671.33 crore.  

During the fiscal year, Yum! Restaurants (India) sold its entire stake in Devyani International Ltd through a block deal for Rs 871.09 crore. The investment was initially acquired for Rs 230 crore in FY21 as part of a business transfer agreement.  

“The said sale of shares transaction resulted in an overall gain of Rs 635.05 crore (net of selling expenses of Rs 604.24 lakh) when compared to the acquisition cost, while the gain recognised as part of ‘other income’ during the current year (due to measurement at FVTPL) amounts to Rs 97.20 crore (net of selling expenses),” the filing noted.  

Yum! Restaurants (India) manages and develops its QSR brands through a mix of company-owned and franchise-operated stores. It also provides support services to restaurants in certain neighbouring countries and group companies. Franchisees contribute a percentage of their revenues toward advertising and promotional activities managed by Yum!’s subsidiary companies.  

The company is owned by Singapore-based Yum Asia Franchisee Pte Ltd, a unit of Louisville, Kentucky-based Yum! Brands Inc.