Devyani International Limited, the quick service restaurant (QSR) operator behind KFC and Pizza Hut in India, has announced its financial results for the quarter ending June 30, 2024. The company reported impressive year-on-year (YoY) growth, highlighting its robust performance in the QSR sector.
Revenue Growth
For the June quarter, Devyani International recorded a 44.3% YoY increase in revenue, reaching ₹1,221.9 Crore, compared to ₹846.6 Crore in the same period last year. Sequentially, revenue was up 16.7% from ₹1,047.1 Crore in the fourth quarter. The revenue contributions were as follows:
Profitability
The company reported a net profit of ₹22.43 Crore for the June quarter, a significant turnaround from a net loss of ₹1.59 Crore in the same quarter last year. This marks a substantial sequential improvement from a net loss of ₹48.95 Crore in the previous quarter.
EBITDA and Margins
Devyani International’s consolidated EBITDA for the June 2024 quarter reached ₹223.4 Crore, with margins improving to 18.3% from 16.6% in the previous quarter. However, on a YoY basis, the EBITDA margin declined by 2.2% from 20.5% in Q1 FY24.
Market Reaction
On August 5, Devyani International’s shares initially gained 0.22% on the BSE, reaching a day’s high of ₹178.55 apiece. However, the stock lost all its gains as the day progressed, trading at ₹172.7 apiece by 1:40 pm, reflecting a decline of 3.06%.
Expansion Plans
The company announced the addition of 54 net new stores in under-penetrated markets, increasing its total store count to 1,836 as of June 30, 2024. Devyani International aims to open between 250 and 275 new stores in FY25, with a target of reaching a total store count of 2,000 within the current financial year.
Management Commentary
Ravi Jaipuria, the non-executive chairman of Devyani International Limited, commented, “We witnessed an improved performance for DIL in Q1, driven by seasonality and cost leverage from better average daily sales (ADS) across our businesses. As announced earlier, we are on track to achieve a total store count of 2,000 stores within the current financial year.”
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