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Devyani International Shares Gain 4% Despite 36.9% Decline in Q2 Net Profit

The company reported a 36.9% YoY decrease in its consolidated net profit at Rs 35.82 crore.

Shares of Devyani International were trading 4% higher on 7 November after the company announced its earnings for the July-September quarter.

The company reported a 36.9% year-on-year (YoY) decrease in its consolidated net profit at Rs 35.82 crore during the quarter from Rs 56.83 crore reported in the year-ago quarter.

However, the revenue from operations saw a 9.63% YoY increase to Rs 819.47 crore against Rs 747.42 crore reported in the same quarter in the previous fiscal year.

The company’s EBITDA (earnings before interest, tax, depreciation, and amortisation) was at Rs 154 crore, marking a 7% YoY decline. The EBITDA margin contracted to 18.8% for the quarter from 22.2% reported in the corresponding quarter of the previous financial year.

Ravi Jaipuria, Non-Executive Chairman, Devyani International Limited, said, “High inflation across industries and categories from a macroeconomic perspective has led to a short-term impact on consumer sentiment and depressed consumer spending in the last few quarters. Despite this, our performance continues to be resilient, and we continue to invest in the business for long-term growth. We are hopeful that the rebound in consumer spending will take place in the next few quarters. We are poised for success in the dynamic and evolving QSR landscape by optimising menu pricing, reducing wastage, cost controls and improving operational efficiency.”

The company is headed towards a steady expansion of stores during the first half of the current fiscal year; the company has opened 115 new stores, bringing the overall existing store count to 1,358 as of 30 September 2023. Out of the 115 new stores opened during the first half, 68 stores were opened in Q2 that encompass various brands within its portfolio.

The company’s expansion strategy reflects its ongoing commitment to investing in its core brand and extending its presence to reach its extended customer base.

Devyani International now has operations in 240 cities across India.

At 3:08 pm, the shares of Devyani International were trading 1.34% higher at Rs 192.40 on NSE.

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