Shares of Jubilant FoodWorks (JFL) hit a brand new document excessive of Rs 3,348 as they surged 9 per cent on the BSE in intra-day commerce on Thursday on a powerful progress outlook. The inventory of the nation’s largest foodservice firm surpassed its earlier excessive of Rs 3,331.85 touched on June 16, 2021.
Its Domino’s Pizza franchise extends throughout a community of 1,380 eating places in 298 cities. The corporate has unique rights to develop and function Domino’s Pizza model in India, Sri Lanka, Bangladesh and Nepal. It additionally enjoys unique rights to develop and function Dunkin’ Donuts eating places in India. JFL has ventured into the Chinese language delicacies phase with its first owned restaurant model ‘Hong’s Kitchen’.
For the April-June quarter (Q1FY21), JFL reported a consolidated web revenue of Rs 69.06 crore within the first quarter ended June 30, aided by greater revenues regardless of the second wave of Covid-19 disrupting operations. It had posted a consolidated web lack of Rs 74.47 crore in the identical quarter final fiscal.
Its income from operations within the first quarter stood at Rs 893.19 crore as in comparison with Rs 388.41 crore within the corresponding interval final yr when operations have been additionally disrupted by the outbreak of the pandemic. “This was pushed by Domino’s Like-for-like (LFL) gross sales progress of 120.four per cent and Identical-Retailer Progress (SSG) of 114.2 per cent. The expansion in Supply channel, which grew by 123.7 per cent, mitigated the impression on account of Dine-in channel being shut for a very long time and mobility restrictions impacting the takeaway channel,” the administration mentioned. With vaccinations nicely underway, we consider that the worst is behind us and we’re assured of delivering robust, sustained progress within the durations forward, the administration mentioned.
Ebitda (earnings earlier than curiosity, taxes, depreciation, and amortization) margins remained unchanged at 24.1 per cent in Q1FY22 in opposition to 24.Three per cent in Q4FY21.
Brokerage Motilal Oswal Monetary Companies believes QSRs (fast service restaurant) are in a candy spot for fast progress over the following 5–10 years in India and provide scope for a 25–30 per cent working revenue CAGR for a number of gamers, with Domino’s as essentially the most environment friendly amongst them. “Given the structural alternatives within the QSR area and Jubilant’s dominant positioning with confirmed and worthwhile mannequin, we count on JFL to be the important thing beneficiary of beneficial traits (shift in direction of branded gamers),” the brokerage agency mentioned in a outcome replace.