Jubilant FoodWorks surges 9%, hits file excessive on robust development outlook


Shares of (JFL) hit a brand new file excessive of Rs 3,348 as they surged 9 per cent on the BSE in intra-day commerce on Thursday on a powerful development outlook. The inventory of the nation’s largest foodservice firm surpassed its earlier excessive of Rs 3,331.85 touched on June 16, 2021.

Its Domino’s Pizza franchise extends throughout a community of 1,380 eating places in 298 cities. The corporate has unique rights to develop and function Domino’s Pizza model in India, Sri Lanka, Bangladesh and Nepal. It additionally enjoys unique rights to develop and function Dunkin’ Donuts eating places in India. JFL has ventured into the Chinese language delicacies section with its first owned restaurant model ‘Hong’s Kitchen’.

For the April-June quarter (Q1FY21), JFL reported a consolidated web revenue of Rs 69.06 crore within the first quarter ended June 30, aided by increased revenues regardless of the second wave of Covid-19 disrupting operations. It had posted a consolidated web lack of Rs 74.47 crore in the identical quarter final fiscal.

Its income from operations within the first quarter stood at Rs 893.19 crore as in comparison with Rs 388.41 crore within the corresponding interval final yr when operations have been additionally disrupted by the outbreak of the pandemic. “This was pushed by Domino’s Like-for-like (LFL) gross sales development of 120.4 per cent and Identical-Retailer Progress (SSG) of 114.2 per cent. The expansion in Supply channel, which grew by 123.7 per cent, mitigated the impression on account of Dine-in channel being shut for a very long time and mobility restrictions impacting the takeaway channel,” the administration mentioned. With vaccinations properly underway, we consider that the worst is behind us and we’re assured of delivering robust, sustained development within the durations forward, the administration mentioned.

Ebitda (earnings earlier than curiosity, taxes, depreciation, and amortization) margins remained unchanged at 24.1 per cent in Q1FY22 towards 24.3 per cent in Q4FY21.

Brokerage Motilal Oswal Monetary Providers believes QSRs (fast service restaurant) are in a candy spot for speedy development over the subsequent 5–10 years in India and provide scope for a 25–30 per cent working revenue CAGR for a number of gamers, with Domino’s as essentially the most environment friendly amongst them. “Given the structural alternatives within the house and Jubilant’s dominant positioning with confirmed and worthwhile mannequin, we anticipate JFL to be the important thing beneficiary of beneficial tendencies (shift in the direction of branded gamers),” the brokerage agency mentioned in a consequence replace.

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