Devyani International Q3 Profit Dips 87% in India's Challenging Restaurant Market

2 Feb 2024 , 01:24 AM

Devyani International, an Indian company, revealed an 87% decline in quarterly profit in the face of a difficult macroeconomic environment and muted consumer mood. The combined net profit of the KFC and Pizza Hut operator decreased to ₹9.6 crore for the third quarter that ended on December 31 from ₹71.6 crore in the same period last year.

On the other hand, Devyani International’s operating revenue increased 6% year over year to ₹843 crore from ₹791 crore during the same time previous year.

EBITDA decreased by 17% to ₹146 crore from ₹175 crore in the previous year. The margins on EBITDA were 17.3%.

‘We have seen muted consumer attitudes. We are hopeful about seeing a comeback over the coming quarters, though, since we think that the poor consumer sentiment and decreased consumer spending are only transitory. Our operations and financial performance has remained steady in the face of these difficulties, and we are still investing in the company to drive long-term growth,’ stated Devyani International Non-Executive Chairman Ravi Jaipuria.

Jaipuria added that Restaurants Development Co Ltd (RD), one of KFC’s franchisee partners in Thailand, had been successfully acquired by the company. ‘This has led to the addition of 283 KFC stores as on December 31, (274 stores as on September 30) to our overall store portfolio,’ he stated.

Devyani International is in a good position to surpass its original objective of 2026 and reach its goal of 2,000 outlets by the end of 2024.

At 12:45 PM today, shares of Devyani were up 1.91% at ₹174.45.

For feedback and suggestions, write to us at [e-mail]