Jubilant Foodworks Net Profit Down By 18.47%

The analysts were expecting Jubilant Foodworks to report a net profit of around Rs 32.4 crore whereas the actual net profit stood at Rs 27.2 crore compared to Rs 34 crore posted in the same quarter last year. Similarly the expectation from the revenue was around Rs 485 crore for the quarter but the actual revenue stood at Rs 467 crore compared to Rs 396 crore in the corresponding quarter of the previous year

On standalone basis, the net profit of the company declined by 18.47% primarily due to increase in the total expenses which went up by 26.58% to Rs 440 crore against Rs 347 crore on yearly basis. The increase in the expenses can be attributed to increase in the cost of raw materials, employee benefits expense and other expenses which increased by 19.01%, 31%, 28.98% respectively. Increase in expenses was due to promotional activities and higher inflation and development of Dunkin brand.

The EBITDA for the quarter stood at Rs 58.96 crore against Rs 66.9 crore in the corresponding quarter of previous year, whereas the EBITDA margins fell by 440 basis points to 12.4% against 16.8% on yearly basis. The sales contribution of delivery sales for Q1FY15 was about 21.8% whereas mobile ordering sales contributed to 21.5% during this quarter. The same sales growth declined by 2.4% on yearly basis.

Commenting on the performance for Q1FY15, Shyam Bhartia, Co-Chairman, said, "Our company is built on the strength of our expertise in the Indian food service industry (FSI) and the robustness of our systems and that with JFL has evolved to become a leader in its domain."

Talking about the future prospects of the company, they target to launch 150 Domino's pizza restaurant and 25 Dunkin Donuts restaurant in FY15. The company also targets to reach wider audience by tapping different cities. 

The company announced its financial results during trading hours. Post the results, the share prices of the company fell by 4.02% as the company failed to meet the street expectations.