Shares of Jubilant Foodworks lost more than 6 percent on February 1 after the company's quarterly earnings failed to meet analysts' expectations. The stock was trading at Rs 456.85 at 3:23pm.
The foodservice company has recorded consolidated profit at Rs 80.4 crore for the quarter ended December FY23, falling sharply by 40 percent compared to the year-ago period weighed down by weak operating margin performance.
Consolidated revenue from operations at Rs 1,332 crore for the quarter grew by 10 percent on-year, primarily driven by growth in orders for Domino’s.
"The Domino’s Like-for-Like growth came in at 0.3 percent. The delivery channel registered 9.9 percent growth led by orders partially offset by a decline in ticket. The dine-in and takeaway channels combined registered a 9.8 percent growth, driven by increase in ticket and orders," Jubilant said in a filing to exchanges.
The operating performance was weak with the EBITDA (earnings before interest, tax, depreciation and amortisation) falling 10.2 percent on-year to Rs 286.44 crore and margin down by around 5 percentage points to 21.5 percent hit by higher input costs.
"The historic high inflation continues to keep the margin under pressure," Jubilant said.
Numbers came in below analysts' estimates on all counts. Profit was estimated at Rs 126 crore on a revenue of Rs 1,356 crore for the quarter, while EBITDA was pegged at Rs 327 crore with margin at 24.1 percent, according to the average of estimates of analysts polled by CNBC-TV18.
During the quarter, Jubilant Foodworks opened 64 outlets in India, including 60 store of Domino's, taking the network to 1,814 stores across all brands.
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