Jubilant Foodworks down as Q1 net dips on margin pressure

Net profit for the June quarter was down 20% at Rs 28 crore on account of lower margins

Shares of Jubilant Foodworks were trading 2% lower at Rs 1,212 as net profit for the first quarter ended June 30, 2014 was down 18% to Rs 28 crore because of margin pressure. Net profit for the same quarter last fiscal stood at Rs 34 crore.

Net sales for the June quarter was up 20% at Rs 477 crore compared to Rs 396 crore in the same quarter last year.

"Margins impacted by increase in expenditure related to employee cost, rentals, adverrtising and promotion and Dunkin' Donuts development," the company said in a release.

Further, same store growth during the June quarter stood at 2.4% compared to growth of 6.3% in the quarter ended June 30, 2013.

The stock opened at Rs 1,231 and touched a low of Rs 1,181 on the BSE. Over 7.5 million shares were traded so far on both the stock exchanges.