Jubilant Foodworks, the operator of Domino’s Pizza in India, is likely to post a rise of 21.5 percent in its revenues for June quarter, while profits could grow 127 percent on account of low base, Motilal Oswal has said in a report. The brokerage house expects profit for the June quarter to be around Rs 54.2 crore.
The revenues could rise to Rs 820 crore, but the gross margin could see some contraction, by 50 basis points, to 75.9 percent. Having said that, it expects operating margin to grow to 15.7 percent year-on-year and the operating profit could rise 63 percent YoY to Rs 130 crore.
Same store sales growth is likely to be 18 percent on a base of 6.5 percent growth, the brokerage said in its preview report. “We anticipate addition of 15 Domino's stores this quarter,” the report further added.
Key issues to watch for:
Demand outlook for QSR (quick service restaurants) and pizza space, as well as competition.
Benefits of cost-saving efforts.
Performance of Dunkin Donuts and margin guidance.
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