Jubilant Foodworks is expected to post strong revenues growth in December quarter but margins could falter due to higher employee benefits and rentals. According to a CNBC-TV18 poll, net profit is likely to rise 11.4 percent to Rs 39 crore in Q3 from Rs 35 crore in corresponding quarter last fiscal. During the period, revenue is seen increasing 19.6 percent at Rs 663 crore against Rs 554.4 crore. Revenue is likely to be aided by price hikes of 6.5 percent, increase in market share and aggressive offers in Q3.
In Q3 EBITDA is likely to be up 19.5 percent at Rs 87 crore versus Rs 72.8 crore while EBITDA margin may be flat at 13.1 percent on annual basis.
Analysts polled by CNBC-TV18 expect same store sales growth of 2-6 percent in Q3.
However, weak consumer environment and company specific factors may hamper growth but delayed festive season, holidays likely to partially counter subdued demand. Increase in competitive intensity could likely see higher promotional offers.
Gross margins expansion is likey to be countered by employee benefit expenses. Gross margins are expected to expand by 140-220 basis point (bps) on lower input costs and softening food inflation. It may continue to see higher employee costs and rent to bear down on EBITDA.
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