Jubilant FoodWorks Q4 net profit drops 72%

Jubilant FoodWorks, which operates the Domino’s and Dunkin’ Donuts chain of pizza and coffee shops in India, has posted a 71.5% drop in fiscal fourth quarter standalone net profit at Rs 21 crore reflecting the impact of country-wide lockdowns that restricted store operations.

In the year ago period, the company posted a net profit of 73.94 crore.
Standalone revenue from operations stood at Rs 897.85 crore in the quarter ended 31 March, up 3.77% from the year ago period when the company posted Rs 865.19 crore.
Domino’s same store growth (SSG)—that refers to the year-over-year growth in sales for restaurants opened before previous financial year—was down 3.4% after registering a 6% growth in the same quarter last year.
As of 31 March, 2020, the company had 1,335 restaurants across 282cities. During the quarter the company added 13 new Domino’s restaurants.

Recently, the company rolled out its ‘Zero Contact Delivery’ keeping in mind the covid-19 pandemic.
Meanwhile, the company faces a challenge of gaining market shares in a likely declining industry that too in a high operating leverage industry.

It’s long term drivers remain more or less intact given strong digital infrastructure and delivery relationships, strong balance sheet (debt-free) which will help gain from lower competitive pressure and lack of franchisees.
Promoters held 41.94% stake in the company as of March 31, 2020, while FIIs held 30.94%, DIIs 21.05% and public and others 5.88%.

Shares of Jubilant Foodworks traded 2.26% up in Thursday’s trade. Around 53,039 shares changed hands on the counter. Total market cap of the Jubilant Foodworks stood at Rs 20723.76 crore.
The stock traded at a price-to-earnings multiple of 74.02 and a price-to-book ratio of 18.3.

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