Domino's pizza franchise owner Jubilant Foodworks is expected to post a strong April-June quarter. Its Q1 net profit is seen up 26 percent at Rs 35 crore against Rs 27.7 crore in corresponding quarter last fiscal. According to a CNBC-TV18 poll, it is likely to see revenue growth at 25 percent, rising to Rs 597 crore compared to Rs 477 crore on yearly basis.
EBITDA is seen up 31 percent at Rs 78 crore against Rs 59.3 crore while EBITDA margins may stand at 13.1 percent versus 12.4 percent, year-on-year.
Analysts polled by CNBC-TV18 expect same-store-sales-growth (SSSG)of 6-8 percent in Q1. Gross margins are likely to reflect advantage of soft commodity prices but store addition costs may partially weigh down on margins. Rent is likely to remain steady without significant hikes while higher tax burden may impact bottom line.
However, analysts are worried that higher taxes may contain PAT growth. There may be increase in competitive intensity and low promotional offer. Increase in service tax may potentially impact volume growth while potential softness in consumer spends in quick service restaurant (QSR) industry may also pose a threat. The stock was at Rs 1,902.35, down Rs 15.90, or 0.83 percent on the BSE.
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