Shares of Jubilant FoodWorks cracked 13% after the company on Monday reported a 75.88% fall in standalone net profit at Rs 6.71 crore for the fourth quarter ended March 31, 2017.
The company - which operates Dominos and Dunkin Donuts outlets in India - attributed negative same store growth (SSG) and increase in cost on account of expansion for fall in earnings before interest, tax, depreciation and amortisation (EBITDA).
Reacting to its earnings, the stock tanked as much as 135 to Rs to Rs 817.60 on the BSE, but was still over 7% above its 52-week low of Rs 761, hit on December 26 last year.
Meanwhile, over 2 lakh shares of the company exchanged hands on the counter against its two-week average of 42,000 shares.
The company had posted a net profit of Rs 27.83 crore in the Q4 of previous fiscal year.
Its total income stood at Rs 616.35 crore for the quarter under review, down marginally from Rs 620.97 crore in the same period a year ago, the company said in a BSE filing.
During the quarter, the company also reported exceptional cost of Rs 12.17 crore related to one time separation cost incurred as part of manpower rationalisation exercise carried out by the company.
Jubilant FoodWorks Ltd Chairman Shyam S Bhartia and Co- Chairman Hari S Bhartia said the companys topline growth was adversely impacted in the quarter and the year due to unprecedented challenges.
"The company took immediate steps to cut costs and improve efficiencies which enabled us to minimise the adverse impact of slowing sales on the bottom line. We believe that the short-term headwinds are now behind us and firmly believe in the long-term growth potential of our business," they added.
In a separate filing, Jubilant FoodWorks said its Board of Directors have recommended a dividend of Rs 2.50 per equity share for the financial year ended March 31, 2017.
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