Devyani International stock under pressure post positive Q2FY23 numbers

3 Nov 2022 , 12:44 PM

Devyani International Limited (DIL), a multi-dimensional comprehensive QSR player in India, has announced its financial results for the quarter and half year ended September 30, 2022.

DIL delivered a healthy performance across its core brands in a seasonally soft quarter. During the quarter, revenue from operations grew 45% yoy to Rs747.4 crore from Rs516.1 crore in Q2 FY22.

While in H1 FY23, revenue from operations grew 67% yoy to Rs1452.1 crore from Rs868.8 crore in H1 FY22. Continued strong momentum in store additions assisted performance.

During the quarter, Reported EBITDA on a post-IND-AS basis grew 34% yoy to Rs165.5 crore, translating to an EBITDA margin of 22%. PAT stood at Rs56.8 crore.

The Company’s store network continues to expand across metro and non-metro cities. In Q2 FY23, DIL opened a record 88 net new stores in a single quarter, taking the total operational stores to 1,096 as of September 30, 2022.

Commenting on the performance for Q2 & H1 FY23 Ravi Jaipuria, Chairman, Devyani International Limited said, “I am pleased to share that DIL has maintained its store expansion pace and opened 88 net new stores in the quarter — the highest ever. We are making consistent progress in expanding our reach and investing in our Core Brands to capitalize on the growth opportunities available.

In line with our strategy, we have continued our focus on consolidating our presence in metro cities along with the expansion in non-metros towns. At the end of Q2, our total store count stood at 1,096 stores across our portfolio, with a split of 52% in non-metros and 48% in metro cities.”

Key Highlights

• Achieved highest ever net new store opening in a quarter — opened 88 net new stores in Q2 FY23, taking the total count to 1,096 as of 30th September 2022
• Steady performance from the core brands in a seasonally soft quarter
• In Q2 FY23, KFC revenue grew by 47% y-o-y to Rs. 4,430 million, while Pizza Hut expanded by 36% y-o-y to Rs. 1,812 million
• Brand Contribution at KFC came in at 21.5%, while Pizza Hut stood at 17.0%
• Consolidated EBITDA (Post-IndAS) stood at Rs. 1,655 million, up 34% y-o-y, with margins at 22.1%
• Gross Margins stood at 70.2%, reflecting sustained input price increases

At around 12:42 PM, Devyani International was trading at Rs185.90 per share lower by 0.80% on the BSE.

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