India's Devyani International reported a 87% fall in quarterly profit on Friday (January 2) amid a challenging macroeconomic landscape and subdued consumer sentiment. The KFC and Pizza Hut operator's consolidated net profit fell to ₹9.6 crore for the third quarter ended December 31, from ₹71.6 crore a year ago.
However, Devyani International's revenue from operations rose 6% year-on-year to ₹843 crore, compared to ₹791 crore in the corresponding period of last year.
EBITDA was down 17% at ₹146 crore, compared to ₹175 crore a year ago. The EBITDA margins stood at 17.3%.
"We have witnessed subdued consumer sentiments. However, we believe that the weak consumer sentiment and depressed consumer spending is temporary and short-lived, and we are optimistic about witnessing a recovery over the next few quarters. Amid these challenges, our operating and financial performance has remained stable, and we continue to invest in the business for long-term growth," said Ravi Jaipuria, Non-Executive Chairman at Devyani International.
Jaipuria also said the company has successfully completed the acquisition of Restaurants Development Co Ltd (RD) one of the franchisee partners of KFC in Thailand. "This has led to the addition of 283 KFC stores as on December 31, (274 stores as on September 30) to our overall store portfolio," he said.
Devyani International is positioned to meet its goal of achieving 2,000 stores by end of 2024, ahead of the initially projected target of 2026.
Shares of Devyani were trading 1.91% at ₹174.45 at 12:45 pm today.
First Published: Feb 2, 2024 12:51 PM IST
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