Jubilant Food Q2 net seen up 21%, SSS growth may be 5.5-6%

Jubilant Foodworks, which operates Domino’s Pizza brand in India, is expected to register 20.7 percent year-on-year growth in net profit at Rs 35 crore and 22.7 percent growth in revenue at Rs 615 crore for July-September quarter, according to analysts polled by CNBC-TV18. Earnings will be announced on November 5.

Analysts expect same-store-sales growth (SSSG) of 5.5-6 percent for the quarter against 4.6 percent in preceding quarter and negative 5.3 percent in year-ago period. SSSG is likely to benefit from low base in year-ago period and price hikes during the quarter.

However, according to analysts, consumer environment will remain sluggish.

Operating profit is seen rising 23.7 percent to Rs 75 crore and margin may expand 10 basis points to 12.2 percent compared to year-ago period. They expect 30-50 basis points gross margin expansion on lower input costs as softening food inflation may ensure steady gross margin.