Jubilant Foodworks net jumps 55%; shares up

14734 Investors following Jubilant Food. Share this News with them.

0

Like this story, share it with millions of investors on M3

Jubilant Foodworks net jumps 55%; shares up

India's Jubilant Foodworks , which runs the Dominos Pizza chain in the country, posted a forecast-beating 55% jump in quarterly profit on robust demand and store launches, beating estimates and sending its shares up more than 5%.

Post your opinion here

 

0

Tweet

Share on Tumblr

ALSO READ News and Notices about Jubilant Food See interviews with Jubilant Food Management See what other Experts & Brokerages are saying about Jubilant Food See previous Results of Jubilant Food

India's Jubilant Foodworks , which runs the Dominos Pizza chain in the country, posted a forecast-beating 55% jump in quarterly profit on robust demand and store launches, beating estimates and sending its shares up more than 5%.

Markets also cheered Jubilant's upward revision of its new store launch target to 85 stores from 80 in the current fiscal year .

The fast food chain operator opened 28 new stores in the December quarter, while its same store sales growth, a key gauge of profitability for retailers, stood at a robust 30%.

Jubilant recorded a net profit of Rs 29.47 crore for the fiscal third quarter and its net sales grew 49% to Rs 277.29 crore.

Analysts had estimated a net profit of Rs 27.25 crore.

India's USD 13 billion quick service restaurant market is growing 25-30% annually, driven by a generation of young and increasingly wealthy consumers with an appetite for western tastes.

"Our product and store additions continued at a healthy pace. We are successfully enhancing our market share and fortifying our leadership in the quick service industry," co-chairman Hari S. Bhartia said in a statement.

In an inflationary environment, Jubilant's EBITDA (earnings before interest, tax, depreciation, amortisation) was 18.9% during the quarter compared with 17.4% in the previous year.

The company said it plans to launch the first Dunkin Donut store in the country in the next quarter and plans to open 80-100 such stores over five years.

At 2:34 p.m., shares in Jubilant, which the market values at USD 1.2 billion, added 2.53% to Rs 942.6 in a choppy Mumbai market.