On consolidated basis, Devyani International's (DIL) net profit rose 13.5% to Rs 71.67 crore on 26.6% jump in revenue from operations to Rs 790.60 crore in Q3 FY23 over Q3 FY22.
The company said that continued strong momentum in store additions and volume growth assisted the performance.
Consolidated profit before exceptional items and tax stood at Rs 73.55 crore in the quarter ended 31 December 2022, up 10.9% from Rs 66.32 crore posted in Q3 FY22. The company reported exceptional items of Rs 8.76 crore in Q3 FY23. The firm said that the exceptional items include significant foreign currency translation loss (for subsidiary operating in Nigeria).
EBITDA improved by 17.66% to Rs 173.9 crore in Q3 FY23 from Rs 147.8 crore reported in Q3 FY22. EBITDA margin declined to 22% in Q3 FY23 as compared with 23.7% posted in the same period last year.
The company's store network continues to expand across metro and non-metro cities. In Q3 FY23, DIL opened 81 net new stores, taking the total operational stores to 1,177 as of 31 December 2022.
The core brand portfolio reported steady performance in Q3 FY23. KFC revenue grew by 26.9% year on year to Rs 459.5 crore, while Pizza Hut expanded by 18% year on year to Rs 183.6 crore.
Same-store sales growth (SSSG) of KFC was 3% while Pizza Hut stood at negative 6.1%.
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Brand Contribution for the third quarter stood at Rs 145 crore with margins at 18.3%. Meanwhile, brand contribution at KFC stood at 19.7% and Pizza Hut came in at 14.1%.
Ravi Jaipuria, non-executive chairman, Devyani International, said, Innovation remains a strong pillar of our growth strategy across our brand portfolio, and we will continue to delight our customers with many such products in the coming quarters. We remain bullish on our brands and the Indian market. We believe that the current consumer demand slow-down is transient and once inflation stabilizes, we expect the consumer spending to improve which will help our businesses. In the mean time we remain focused on refining our processes, maintaining product quality and enhancing our execution capabilities.
Devyani International is the largest franchisee of Yum Brands in India and are among the largest operators of chain quick service restaurants (QSR) in India, on a nonexclusive basis, and operate 1,177 stores across more than 225 cities in India, Nigeria and Nepal, as of 31 December 2022. In addition, DIL is a franchisee for the Costa Coffee brand and stores in India.
Shares of Devyani International rose 0.72% to Rs 160 on the BSE.
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