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Westlife Development records loss of Rs 58 cr in June quarter

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Capital Market
Last Updated : Jul 31 2020 | 12:04 PM IST

Westlife Development reported a consolidated net loss of Rs 57.56 crore in Q1 FY20 compared with net profit of Rs 6.44 crore in Q1 FY20.

The company owns Hardcastle Restaurants - the master franchisee of McDonald's restaurants for west and south India.

Total Revenues declined 75.4% on a year-on-year (YoY) basis to Rs 93.89 crore in the June quarter.

The company reported a negative operating EBITDA of Rs 57.68 crore with a negative operating EBITDA margin of 61.4% in Q1 June 2020. It had reported a operating EBITDA of Rs 32.63 crore with a operating EBITDA margin of 8.5% in Q1 June 2019.

The Quick Service Restaurants operator recorded a pre-tax loss of Rs 76.82 crore in Q1 FY21 as against pre-tax profit of Rs 8.51 crore in Q1 FY20.

The company started seeing green shoots in the business starting June 2020, as the lock-down started easing in select markets. The company's convenience platform which includes Delivery, Take-Out and Drive-Thru channels showed great results as sales from these platforms bounced back to pre-COVID levels, for operational stores. Per day per store McDelivery sales bounced back to 70% of pre-COVID levels and daily take-out sales from operational stores surged 1.7 times vis-vis pre-COVID levels.

Additionally, convenience platform sales came back to pre-COVID levels for operational Drive-thru stores. The company is confident of growing this momentum and further accelerating sales in the coming months.

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Westlife Development (WDL) focuses on setting up and operating quick service restaurants (QSR) in India through its subsidiary Hardcastle Restaurants (HRPL). The company operates a chain of McDonald's restaurants in West and South India, having a master franchisee relationship with McDonald's Corporation USA, through the latter's Indian subsidiary.

The scrip slipped 0.70% to Rs 352.20. It traded in the range of 352.20 and 355 during the day.

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First Published: Jul 31 2020 | 11:34 AM IST

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