Inflation remains a concern for Devyani despite the recent price hike in KFC as the pass-through is partial
Quick-service restaurant operator Devyani International Ltd’s March quarter (Q4FY22) was a decent one. True, disruptions caused by the Omicron variant of coronavirus in the initial months of Q4 impacted sales. Even so, Devyani’s consolidated revenues rose by 36% year-on-year to ₹590.7 crore, more or less in line with expectations. Further, earnings before interest, taxes, depreciation and amortization (Ebitda) margin stood at 24.3%, ahead of consensus estimate of 22.1%, largely aided by steep cost controls and, to some extent, by price hikes.