Devyani International Ltd Reports Robust Quarterly Profit

Devyani International Ltd, the operator of popular fast-food chains like Pizza Hut and KFC, reported a significant profit for the June quarter FY25, driven by marketing strategies and store expansion. The company achieved a profit of Rs 224.30 crore, contrasting with a loss of Rs 1.59 crore in the same period last year. Revenue surged to Rs 1,221.90 crore, with significant contributions from new store openings and promotional deals.

Devyani International Ltd, the operator of Pizza Hut, KFC, and Costa Coffee stores, has announced a quarterly profit of Rs 224.30 crore for the first quarter of FY25, thanks to effective marketing campaigns and promotional offers.

In stark contrast, the Quick Service Restaurant (QSR) operator reported a loss of Rs 1.59 crore for the same period in FY24, according to a regulatory filing from the Jaipuria family-promoted company.

The company's revenue from operations also saw a significant increase to Rs 1,221.90 crore in Q1 FY25 compared to Rs 846.63 crore in the previous year.

Devyani International's consolidated EBITDA for the quarter reached Rs 220 crore, improving the margin to 18.3 percent, a rise of 1.7 percent from the prior quarter, the company stated.

The total expenses for the June quarter grew by 42.9 percent to Rs 1,201.28 crore.

During this period, the company added 54 new outlets, bringing their total store count to 1,836 as of June 30, 2024, with more expansion plans to open up to 275 more stores in FY25.

Notably, Devyani International also aims to meet its goal of operating 2,000 stores across various brands by the end of the fiscal year. The company remains focused on providing value-based options to consumers through innovative marketing and promotions, positioning itself to capitalize on market dynamics and foster growth.

In the June quarter, the company opened 20 new KFC restaurants (bringing the total to 617), added 15 Pizza Hut stores (totaling 570), and launched 11 new Costa Coffee outlets (totaling 192).

Furthermore, Devyani International is extending its global footprint, with 40 KFC stores in Nigeria, 28 KFC and Pizza Hut stores in Nepal, and 295 KFC stores in Thailand by the end of June.

Chairman Ravi Jaipuria noted the improved performance driven by seasonal trends and cost efficiencies, highlighting the strong growth in their Thailand operations brought about by new openings and a customer-centric approach.

Despite the positive earnings report, DIL shares were trading at Rs 178.60 on the BSE, down by 1.27 percent from the previous close.

(With inputs from agencies.)