Jubilant FoodWorks: Strong topline in Q2 renews investor sentiment

Aggressive store expansion plans indicate firm's confidence for the longer term

Jubilant FoodWorks (Jubilant), the master franchise of Domino’s Pizza and Dunkin’ Donuts in India, reported a 2.2 year-on-year (YoY) fall in net profit to Rs 75.9 crore in the September 2019 quarter (Q2), which was way below Bloomberg consensus expectations of Rs 94.5 crore. 

A one-time expense on account of provisioning for investments in stressed firms such as Dewan Housing Finance Corporation, and for deferred tax, were key reasons for the miss in net profit. 

However, despite the consumption slowdown, Jubilant’s net sales grew 12.1 per cent YoY to Rs 988.2 crore in Q2, and was ahead of analysts’ expectations of Rs