Devyani International Q2 result: Profit falls 43% YoY; opens 68 net new stores in Q2FY24 | Mint
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Business News/ Companies / Company Results/  Devyani International Q2 result: Profit falls 43% YoY; opens 68 net new stores in Q2FY24
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Devyani International Q2 result: Profit falls 43% YoY; opens 68 net new stores in Q2FY24

Devyani International reported a consolidated profit of ₹33.35 crore for Q2FY24, down 43% YoY. Revenue from operations stood at ₹819.47 crore, up 9.64% YoY. The company opened 68 net new stores in Q2FY24, taking the total store count to 1,358.

Devyani International said its India business witnessed a growth of 12.4 per cent year-on-year in Q2FY24. (AP)Premium
Devyani International said its India business witnessed a growth of 12.4 per cent year-on-year in Q2FY24. (AP)

Devyani International on Tuesday, November 7, reported a consolidated profit of 33.35 crore for Q2FY24, down 43 per cent against the profit of 58.76 crore in the corresponding quarter last year.

Revenue from operations for the quarter under review stood at 819.47 crore, up 9.64 per cent year-on-year (YoY) against 747.43 crore in Q2FY23.

The reported EBITDA, post-IND-AS, closed at 158.8 crore, resulting in an EBITDA margin of 19.4 per cent.

Devyani International said its India business witnessed a growth of 12.4 per cent year-on-year. Among core brands, the revenue of KFC stood at 509 crore, the revenue of Pizza Hut stood at 184 crore, and the revenue of Costa Coffee stood at 34.6 crore in Q2FY24.

The company in an exchange filing said it saw a healthy performance across its core brands, despite a challenging macro environment and low consumer sentiment.

The company said it expanded its presence across brands and geographies, opening 68 net new stores in Q2FY24, taking the total store count to 1,358.

Moreover, it said it is on track to open 250 – 275 new stores in FY24 and it is committed to maintaining a dynamic store expansion strategy.

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Devyani International, as per its exchange filing, aims to bring its diverse brand portfolio closer to consumers and strengthen its presence in domestic markets through these new store expansions.

As of September 30, 2023, Devyani International operates 594 KFC stores, 539 Pizza Hut stores, and 146 Costa Coffee stores, with a total of 1,358 system stores across all geographies, according to the company's exchange filing.

"We have opened 115 net new stores in H1 (the first half of the financial year), taking the total store count to 1,358 as on 30th Sep’23. Out of 115 stores in H1, we have opened 68 stores in Q2, across our brand portfolio. We are making consistent progress in investing in our Core Brands and expanding our reach to our target set of consumers to capitalize on the available growth opportunities in India. We are now present in more than 240 cities in India," said Ravi Jaipuria, Non-Executive Chairman, Devyani International Limited.

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"High inflation across industries and categories from a macro-economic perspective has led to a short-term impact on consumer sentiment and spending in the last few quarters. Despite this, our performance remains resilient, and we continue to invest in the business for long-term growth. We are hopeful that a rebound in consumer spending will take place in the next few quarters, positioning us for success in the dynamic and evolving QSR landscape," said Jaipuria.

"Through our ongoing expansion efforts and a keen eye on emerging opportunities, we are well-positioned to seize this significant prospect, ensuring sustainable growth and value enhancement for all our stakeholders," Jaipuria said.

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Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.

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Published: 07 Nov 2023, 12:41 PM IST
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