Devyani International tanks ~3% owing to 84% y-o-y decline in Q1 net profit

4 Aug 2023 , 02:41 PM

Devyani International reported an 84% drop in its June 2023 quarter net profit of Rs 11.75 crore, compared to the previous year’s profit of Rs 73.84 crore.

Following this development, company’s stock fell as much as 3% in today’s trade at Rs 188.75 on NSE.

At around 2.32 PM, Devyani International was trading 2.58% lower at Rs 188.75, against the previous close of Rs 193.75 on NSE.

The company said that its revenue from operations grew 20% y-o-y to Rs 846.63 crore in Q1FY24, compared to Rs 704.72 crore in the previous corresponding quarter.

As per the company, the decline in net profit could be attributed to 24% increase in its total expenses of Rs 793.16 crore in June 2023 quarter, as compared to Rs 636.58 crore in June 2022 quarter.

Sales increased by 12% quarter on quarter (QoQ) basis. According to the company’s filing with the bourses, its core brands, KFC (Rs 516 crore/16% QoQ), Pizza Hut (Rs 184 crore/8% QoQ), and Costa Coffee (Rs 32 crore/-2% QoQ), recorded consistent revenues for the quarter.

The EBITDA climbed 14.6% year on year to Rs 173.4 crore. This resulted in a 20.5% EBITDA margin and a profit before tax (PBT) of Rs 13 crore.

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