Devyani International, India’s leading franchisee for Pizza Hut and KFC, announced a net loss of INR 49 crore for the quarter ended on March 31, 2024. This contrasts with a profit of nearly INR 60 crore during the corresponding period in the previous year.
The company noted a 38% year-on-year (YoY) rise in operational revenue, reaching INR 1061.7 crore. Concurrently, total expenses surged by 32% YoY to INR 550.6 crore, up from INR 374 crore in the fourth quarter of FY23.
The EBITDA margins saw a year-on-year (YoY) decrease of 340 basis points, settling at 16.6%, compared to the 20% recorded in the corresponding period last year.
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“Amidst our global expansion, we’ve been actively strategizing to bolster our presence in the domestic Food Courts business, aligning with India’s growing stature as a hub for travel, tourism, and shopping. With the domestic travel sector thriving, religious tourism stands out as a key focus area. Moreover, India’s prominence in international markets for medical tourism and as a value-for-money shopping destination is on the rise. These shifts are fundamental and enduring. A unifying element in this evolution is food – on the go,” stated Ravi Jaipuria, Non-Executive Chairman of Devyani International.
During Q4FY24, Devyani successfully finalized and integrated its acquisition of RD Thailand, while also incorporating 47 net new stores into its portfolio (including 5 KFC stores in Thailand). Moreover, the total store count is projected to reach the 2,000 milestone in 2024, two years earlier than previously anticipated.
The company has additionally forged a partnership with PVR INOX to manage food courts within shopping malls.
“I am delighted to announce that DIL has formed a strategic alliance with PVR INOX to cultivate and manage food court operations in shopping malls nationwide, synergizing the realms of cinema and gastronomy. This initiative will not only fortify our foothold in numerous malls across the country but also amplify the visibility of our brands and the food court enterprise,” remarked Jaipuria.
Devyani International’s shares were holding steady at INR 156.60 on the BSE around 1:30 pm today.
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