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Jubilant FoodWorks today reported 2.78% jump in standalone net profit at Rs 33.24 crore for the second quarter ended September 30 and said it will hike prices of Dominos Pizza by 5% from mid November to offset impact of inflationary pressures on raw materials.
"We will hike prices of Dominos Pizza by five% from mid November to offset higher cost of raw materials," Jubilant FoodWorks CEO Ajay Kaul told reporters.
The company, which is also a franchise of Dunkin' Donuts chain in India, said there will not be price increase for Dunkin' Donuts.
Jubilant FoodWorks has also lowered future growth guidance due to cut down on discretionary spends by the consumers and economic slowdown.
The company had reported a standalone net profit of Rs 32.34 crore in the July-September quarter in the previous fiscal.
Net sales rose 27.64% to Rs 436.6 crore during Q2, 2013-14, from Rs 342.03 crore in the year-ago period, Jubilant FoodWorks said in a statement.
"The short-term challenges on the inflationary front and around lower discretionary spends are manageable and we have built our business to tide over such exigencies and are confident in our ability to address them," it said.
The company's expenses during the quarter increased by 30.98% to Rs 389.3 crore from Rs 297.22 crore in the Q2 of last fiscal.
"Growth in overall business along with increased input cost inflation, increased level of sales promotion, higher spends on marketing necessitated in an environment of weaker consumer sentiment have together translated to higher spends during the quarter," said the statement.
The company will open 135 Dominos Pizza stories and 20 Dunkin' Donuts stores this fiscal and will make a capex of up to Rs 250 crore, Kaul said.
Jubilant FoodWorks stocks closed at Rs 1,187.35 apiece, up 4.75% from previous close, on the BSE today.
