Devyani International (DIL) declined 2.93% to Rs 172.20 after the company's consolidated net profit dropped 86.58% to Rs 9.61 crore in Q3 FY24 as compared with Rs 71.66 crore in Q3 FY23.
Revenue from operations jumped 6.64% to Rs 843.13 crore during the quarter as compared with Rs 790.60 crore posted in same quarter last year.Profit before tax fell 86.83% year on year to Rs 9.6 crore in Q3 FY24.
EBITDA stood at Rs 146.30 crore in Q3 FY24, down 15.87% YoY during the quarter. EBITDA margin was 17.4% as on 31 December 2023 as against 22% as on 31 December 2022.
During the quarter, India business witnessed a growth of 9.2% over the same period of the previous financial year. In India, the company continued to display resilient performance across its core brands, navigating through a challenging macroeconomic landscape and subdued consumer sentiment.
In Q3 FY24, brand contribution stood at Rs 129.60 crore with margins at 15.4%. Meanwhile, brand contribution at KFC stood at 19%, Pizza Hut came in at 6.1% and Costa Coffee was at 14.9%.
As on 31 December 2023, the company acquires controlling interest in Restaurants Development (RD) to operate 283 KFC restaurants across Thailand. Acquisition successfully completed on 17 January 2024.
DIL remains on track to achieve its ambitious target of opening 250 to 275 outlets in the current fiscal year, underlining its confidence in the long-term potential of the QSR industry in India.
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DIL is positioned to meet its goal of achieving 2,000 stores by end of 2024, ahead of the initially projected target of 2026, the company stated in press release.
As on 31st December 2023, DIL operates 647 KFC stores, 570 Pizza Hut stores, and 154 Costa Coffee stores, with a total of 1,452 system stores across its existing geographies.
Ravi Jaipuria, non-executive chairman, Devyani International, said, At the outset, I feel very excited to share with all of you that we have successfully completed the acquisition of Restaurants Development Co Ltd (RD) one of the franchisee partners of KFC in Thailand. This has led to the addition of 283 KFC stores as on 31st December (274 stores as on 30th September) to our overall store portfolio.
We have witnessed subdued consumer sentiments. However, we believe that the weak consumer sentiment and depressed consumer spending is temporary & short-lived, and we are optimistic about witnessing a recovery over the next few quarters. Amid these challenges, our operating and financial performance has remained stable, and we continue to invest in the business for long-term growth.
We had previously set ourselves an ambitious goal of reaching 2,000 stores by 2026. You will be happy to note that, following the completion of the Thailand acquisition, we are confident of achieving this major milestone by end of calendar year 2024.
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, as on 31st December 2023, DIL operates 647 KFC stores, 570 Pizza Hut stores, and 154 Costa Coffee stores, with a total of 1,452 system stores across its existing geographies.
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