Devyani International Q3 PAT jumps 40% YoY to Rs 66 cr

On a consolidated basis, the company’s net profit rose 39.83% to Rs 66 crore on 64.71% increase in net revenue to Rs 624.40 crore in Q3 December 2021 over Q3 December 2020.

Devyani International (DIL) recorded its highest-ever quarterly results in Q3 FY22. The performance surpassed pre-pandemic levels and was driven by new store openings coupled with solid momentum in demand. DIL reported improved profitability during the quarter on the back of several initiatives towards cost-optimization and improving store economics. Gross margins expanded by 270 basis points YoY to 71.4% in Q3 FY22.

EBITDA improved by 67.38% to Rs 147.80 crore in Q3 FY22 from Rs 88.30 crore in Q3 FY21. EBITDA margin stood at 23.7% in Q3 FY22 as against 23.3% in Q3 FY21.

Profit before tax in the third quarter stood at Rs 66.90 crore, up by 41.14% from Rs 47.40 crore reported in the same period last year. Raw material cost jumped 50.42% to Rs 178.70 crore in Q3 FY22 over Q3 FY21.

The core brand portfolio reported an encouraging all-round performance in Q3 FY22. KFC and Pizza Hut registered a revenue growth of 64% YoY each, primarily led by store additions and higher demand.

Same-store sales growth (SSSG) across both brands remained robust with KFC at 24% and Pizza Hut at 25%.

Revenue from Costa Coffee grew 88% YoY to Rs 14.3 crore.

The company has opened 81 net new stores in Q3, which is the highest store openings recorded by the company in a quarter. All store expansion plans are being undertaken through internal accruals.

As on 31 December 2021, DIL operated 339 KFC stores, 391 Pizza Hut stores and 50 Costa Coffee stores in India. The total system store count stands at 884 across its entire brand
portfolio.

DIL is the largest franchisee of Yum Brands in India and are among the largest operators of chain quick service restaurants (QSR) in India, on a non-exclusive basis, and operate 884 stores across more than 200 cities in India, Nigeria and Nepal, as of 31 December 2021. In addition, DIL is a franchisee for the Costa Coffee brand and stores in India.

Yum! Brands Inc. operates brands such as KFC, Pizza Hut and Taco Bell brands and has presence globally with more than 50,000 restaurants in over 150 countries, as of 31 December 2020.

Founded in London by Italian brothers Sergio and Bruno Costa in 1971, Costa Coffee is present in 41 countries around the world, with over 2,800+ coffee shops in the UK&I and 1,100+ globally.

Shares of DIL were down 2.12% at Rs 180.25 on the BSE. The stock entered the bourses on 16 August 2021 at Rs 141 per share, at a premium of 56.67% to the initial public offer (IPO) price of Rs 90 per share.

The IPO of DIL was subscribed 116.71 times. The issue opened for bidding on 4 August 2021 and closed on 6 August 2021. The price band of the IPO was fixed at Rs 86-90 per share.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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