Jubilant Foodworks Q4 net seen up 20%, FY16 guidance key

Net profit of Jubilant Foodworks is likely to grow 19.7 percent at Rs 29.8 crore in the March quarter against Rs 24.9 crore in the corresponding quarter last fiscal. According to a CNBC-TV18 poll, revenue is seen growing 23.3 percent to Rs 534.7 crore versus Rs 433.7 crore on a yearly basis.

Analysts are expecting a steady quarter but demand may not witness sharp uptick. However, same-store-sales (SSS) growth may be at 2-4 percent in fourth quarter versus a de-growth of 3.4 percent year-on-year. Revenue growth is likely to be further aided by newly added Dominoes and Dunkin stores while margins may see small decline over higher ad spends.

Competitive intensity and promotional offers may further pressure margins. Price hike led revenue growth is likely to be offset by high rental and gross margins may remain stable over benign cheese prices.

Analysts are suggesting to keep a close eye on FY16 guidance as the management had guided addition of 150 stores in FY15. Also expectation on change in rentals given change in realty rates and Dunkin Donuts expansion plans will be key.