Jubilant FoodWorks slammed by investors due to weak SSSG expects strong growth in remaining FY22

Asia's Tech News Daily

Jubilant FoodWorks', #Jubilant Foodworks Q2, #Jubilant FoodWorks second quarter results

Domino’s Pizza outlet. (PC-Facebook)

The food service industry, backed by strong momentum in deliveries and takeaways, is out of the woods and poised for strong growth, Jubilant FoodWorks’ management told investors while announcing second-quarter results.

“The Indian economy has continued to make solid progress and we see the foodservice industry set for strong growth in the remaining quarters of this year,” co-chairman Hari Bhartia said.

According to Bhartia, while 95 percent of the company’s stores were operational during the quarter, it witnessed a noticeable uptick in demand in the quarter ended September that made up for closed stores. The company’s growth in the quarter, he added, was driven by strong growth in the delivery and takeaway channels while dine-in showed signs of recovery though still below pre-COVID levels.

While the company may be upbeat about the future, its performance for the September quarter failed to impress analysts due to below-than-expected same-store sales growth and like-for-like sales for new stores. Jubilant FoodWorks, which runs quick-service restaurants (QSRs) such as Dominos and Dunkin Donuts, reported a strong growth in revenue and net profit during the quarter.

Second-quarter results

The company reported a 58 percent year-on-year (y-o-y) jump in its consolidated net profit to Rs 120 crore in Q2FY22 against the Rs 76 crore reported in the corresponding period last fiscal. Revenue during the period also climbed by 37 percent y-o-y Rs 1,116 crore compared with Rs 816 crore last year.

The company registered growth sequentially too. Its quarter-on-quarter consolidated net profit shot up by 90 percent, while revenue was up 27 percent. The company had reported a net profit of Rs 63 crore in Q1FY22 and revenue of Rs 879 crore.

Its delivery and takeaway businesses saw a 36.8 percent and 72.2 percent growth, respectively, in Q2FY22 versus the same quarter last fiscal. Dine-in recovery, however, said CEO Pratik Pota, was muted during the quarter at 46.9 percent.

“While we are present across geographies, the growth was much stronger in smaller towns and non-metros,” he added.

The company also added 55 new stores during the quarter and entered nine new cities. It now has 14,354 stores in the country, across 307 cities. The company also crossed the 1,400-store milestone for Domino’s in India.

“India is the first country outside of the US to have opened more than 1,400 outlets,” said Bhartia. Jubilant FoodWorks sees the potential to open about 3,000 Domino’s stores in the country.

Same-store sales growth, however, was flat in the quarter, which has concerned some analysts. It stood at 26.3 percent against the expectation of 30-35 percent. The company’s like-for-like sales growth at 29 percent during the quarter also failed to cheer analysts.

The company’s stock fell over 8 percent after the results on Wednesday. On Thursday, Jubilant FoodWorks was down 3.03 percent below at Rs 3,845 on the BSE.

A mixed reaction

Other analysts, however, said the company’s performance beat expectations and are upbeat about it in the quarters ahead.

“The stock market correction yesterday is not linked with the company’s performance in Q2. It is a near-term market reaction on account of profit booking,” said Abneesh Roy, executive director, Edelweiss Securities.

According to Roy, the quarter ahead for the company looks bright, especially as restrictions further ease in states like Maharashtra. Edelweiss Securities maintained its ‘buy’ rating on the stock.

ICICI Securities, too, maintained its ‘add’ rating on the stock, but slashed FY22 earnings estimates by 8-10 percent. “Maintain ‘add’ with DCF-based revised target price of Rs 4,200 (was Rs 3,500 earlier) as we roll forward. The key downside risk is raw material costs turning inflationary,” it said.

Jefferies downgraded it to ‘hold’ with a revised price target of Rs 4,100.

Internet Explorer Channel Network
Asia's Tech News Daily
News Related


DNB warns financial sector: do not wait any longer to consider climate risks

It is almost becoming a regular tune from De Nederlandsche Bank: the warning to the financial sector about the impact of climate change. It is really a risk for the ... Read more »

Astranis signs deal to bring satellite internet to 3 million people in Peru by 2023

A visualization shows an Astranis satellite over Peru in orbit.Astranis Astranis, a San Francisco-based company with an alternative approach to providing internet access from satellites, on Wednesday announced a deal ... Read more »

EU ministers clear the way for abolishing VAT on solar panels

Photo: ANP VAT levies on certain goods and services, including solar panels, water, passenger transport and live streaming of sports matches or shows, can be reduced in the EU to ... Read more »

EU agreement: The Netherlands may abolish VAT on solar panels and water

The Netherlands has argued in the past for the use of a zero rate, but this was only possible in specific cases, such as the supply and supply of ships ... Read more »

American Airlines CEO Doug Parker to retire, after 20 years at helm

Parker is the longest-serving chief executive of a major U.S. airline. Read more »

'Wind direction' partly to blame after thousands cut off by storm, energy boss tells MPs

Paul McGimpsey of the Energy Networks Association faced questions at a select committee over storm Arwen, which has left thousands of homes cut off. Read more »

Moscow court fines Google over $188,000 in four cases of unlawful content

As of now, Google has been fined a total of 58 mln rubles ($778,890) for the same offense Read more »

Large profit margins on cheap self tests but the market may be volatile: FD

A coronavirus nasal testing kit. Photo: Depositphotos.com Now that self testing is being encouraged, including for people with mild symptoms, the trade in tests is booming but purchase prices appear ... Read more »

SaaS startup MoEngage raises $30 million led by Steadview Capital

Customer analytics startup MoEngage on December 7 said that it has raised $30 million led by Steadview Capital, doubling its valuation to about $500 million in six months. While MoEngage ... Read more »

American Airlines CEO Doug Parker to retire, president Robert Isom to take reins March 31

An American Airlines plane lands at Ronald Reagan Washington National Airport November 23, 2021 in Arlington, Virginia.Drew Angerer | Getty Images American Airlines CEO Doug Parker, the longest-serving chief executive of a ... Read more »

Half of office occupiers with presence in tier-II cities using flex spaces: JLL- Awfis Survey

Almost half of the office occupiers who already have a presence in tier-II cities are using flexible spaces due to the availability of shorter leases and a cautious approach by ... Read more »

Chip companies lead in sharply higher AEX

The stock exchange in Amsterdam traded sharply higher on Tuesday, partly due to the gains made by shares in the chip sector. Investors were less concerned about the economic impact ... Read more »

Gainers & Losers: 10 stocks that moved the most on December 7

India’s benchmark indices ended higher on December 7 led by gains in auto, metal, realty and financial names. At close, the Sensex was up 886.51 points, or 1.56%, at 57,633.65, ... Read more »

CDL, Palo IT bag top prizes in Sustainable Business Awards for their green initiatives

SINGAPORE – Doing well by doing good – that is the philosophy of the companies that bagged awards for being sustainable at a ceremony on Tuesday (Dec 7). The desire ... Read more »

Small businesses welcome plans for UPI-like digital platform for MSME lending

Representative Image (Source: ShutterStock) A digital platform to provide quick and easy credit to the micro, small and medium enterprises sector can reduce paperwork and ease the flow of small-ticket ... Read more »

German investor confidence down due to Omikron variant

Photo: ANP German investor confidence has fallen due to the rise of the Omikron variant of the coronavirus. According to figures from the German research institute ZEW, investors are mainly ... Read more »

United Arab Emirates to move to Western-style Monday to Friday working week

UAE's government says the change will make it "the first nation in the world to introduce a national working week shorter than the global five-day week". Read more »

Racing Post-owner Spotlight Sports picks bankers in race towards £500m sale

Exponent Private Equity has appointed PJT Partners to handle an auction of Spotlight Sports, owner of the racing bible, amid interest from prospective buyers in the US, Sky News learns. Read more »

Russian cabinet considering Rosneft gas supplies to Europe, says Kremlin

Currently, only Gazprom has the right to export pipeline gas Read more »

Biden's Build Back Better bill may save you up to $900 when buying an e-bike. Here's how the proposed tax credit works

A man rides an electric bicycle near the pier in Huntington Beach, CA on Tuesday, April 6, 2021.Paul Bersebach | Getty Images Electric bicycles have soared in popularity in recent ... Read more »

Government may invite bids for Pawan Hans stake by January: Officials

Pawan Hans has the largest fleet of helicopters in India. The government plans to invite expressions of interest from potential bidders for Pawan Hans by January 2022 as part of ... Read more »

Intel wants IPO for Mobileye self-driving car division

Photo: ANP American chipmaker Intel plans to list its Mobileye division, which focuses on self-driving cars, in mid-2022. The company confirmed this on Tuesday after reporting it in The Wall ... Read more »

Edelweiss Financial Services NCD Issue: Should you invest?

Edelweiss Financial Services is issuing non-convertible debentures and the first tranche is available to investors from December 6, 2021 for subscription of up to Rs 500 crore. Investors will have ... Read more »

More than a third of Hong Kong firms to step up hiring, almost 60 per cent to increase pay, CPA Australia survey finds

An increase in hiring and pay rises are in store for Hong Kong next year thanks to an improvement in the city’s economic outlook, according to a survey conducted by ... Read more »

Electric driving is becoming more attractive, but ‘subsidy is still desperately needed'

The supply of affordable electric cars is increasing and at the same time the interest of Dutch car users in electric driving is growing. That writes the ANWB on Tuesday. ... Read more »

BMW hits 1 mn EV sales, targets 2 mn fully electric sales by 2025

BMW has sold its one millionth electric vehicle (EV) – including purely electric and hybrid vehicles – and plans to reach two million sales of purely electric vehicles by 2025, ... Read more »

Nestle India gets govt approval for PLI scheme for processed fruits, vegetables

FMCG major Nestle India said on December 7 that it has received approval from the government for the production-linked incentive (PLI) scheme for processed fruits and vegetables. In June 2021, ... Read more »

Government mulls over giving deadline to declare crypto assets: Report

(Image: Reuters) The Central government is considering to give Indian cryptocurrency holders a deadline in order to declare assets and become compliant with forthcoming new rules, according to a Bloomberg ... Read more »

More jobs in the EU than before the corona crisis

Photo: ANP 100,000 more people are working in the European Union than before the corona crisis. In total, 210 million people had a paid job in the third quarter, reports ... Read more »

Jack in the Box announces acquisition of Del Taco

Photo by: Jack in the Box Press Release Jack in the Box has acquired Del Taco Restaurants for $455.3 million. The deal is a strategic decision as the fast-food restaurant ... Read more »

Bank of Thailand urges banks to refrain from trading digital assets

FILE PHOTO: Representations of cryptocurrencies Bitcoin, Ethereum, DogeCoin, Ripple and Litecoin are placed on a PC motherboard in this illustration taken June 29, 2021. (Reuters) The central bank on Tuesday ... Read more »

Putin's visit shows India-Russia ties are truly special

Russia’s President Vladimir Putin and Prime Minister Narendra Modi (File image) Russian President Vladimir Putin’s India visit has brought back the issue of ‘strategic balance’ in the Indian foreign policy ... Read more »

'Dramatic effect' of new travel rules on bookings

Read more »

Top-performing smallcases - November 2021

November was off to a good start! With the festival of lights inaugurating the month, millions of people celebrated their Diwali and marked a new beginning for the Hindu Calendar ... Read more »

Tyson Foods will give out $50 million year-end bonuses to frontliners

Photo by: Tyson Foods Press Release Tyson Foods is rewarding frontline workers with big year-end bonuses, and this was announced on Monday, Dec. 6. It will be shelling out around ... Read more »

No more Friday-Saturday, UAE announces move to Saturday-Sunday weekend to align with global markets

Under the new work week for government entities, Friday working hours would end at 12 noon, ahead of Friday sermons and prayers. (File photo) The United Arab Emirates said on ... Read more »

Instagram rolls out new features to 'make it safer' for teenagers

Instagram unveiled new features on December 7 in a bid to make the platform safer for teenagers as it faces scrutiny over leaked internal research that said the app adversely ... Read more »

Switzerland to use 'suicide pod' which promises painless death in 1 minute

The 3-D printed Sarco Pod was created by Australian non-profit organisation Exit International. (Image credit: Exit International) Switzerland has recently legalised the use of Sarco Suicide Pod — a 3D-printed portable coffin-like ... Read more »

Citroen to hike C5 Aircross SUV price by up to 3% from January

Automaker Citroen India on Tuesday said it will increase price of its premium SUV C5 Aircross by up to 3 per cent from January next year to offset the impact ... Read more »

Revealed: how the prices of Christmas dinner favourites have changed this year

Grocery price inflation rose to 3.2% in November, the highest rate since June 2020 - and stripping out figures from the early months of the pandemic it has not been higher since the start of 2018. Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic