Devyani Intl reports dismal Q2 numbers in FY25

Revenue from operations was at Rs 1,222.2 crore in the second quarter of FY25, marking a growth of 49.14% as against Rs 819.47 crore posted in Q2 FY24.

The firm reported pre tax loss of Rs 3.91 crore in Q2 FY25 as against profit before tax of Rs 19.01 crore posted in corresponding quarter previous fiscal.

Total expenses jumped 55.21% year on year to Rs 1,230.9 crore in Q2 FY25. Material cost was at Rs 373.63 crore (up 56.83% YoY) and employee benefits expense stood at Rs 183.42 crore (up 65.34% YoY) during the quarter.

Consolidated EBITDA was at Rs 198.70 crore in the second quarter of FY25, up 25.12% as against Rs 158.80 crore posted in Q2 FY24. EBITDA margin reduced to 16.3% in Q2 FY25 as against 19.4% posted in Q2 FY24.

Devyani International said that it has opened 85 net new stores, taking the total store count to 1,921 as of 30 September 2024 ' on track to achieve the guidance of 2,000 stores in FY25.

Meanwhlie, the company announced that it has secured Exclusive Master Franchise rights for three modern QSR brands: TeaLive, New York Fries and SANOOK KITCHEN. Each partnership is unique and shall help DIL to achieve its growth strategy.

Ravi Jaipuria, Non-Executive Chairman, Devyani International said, 'We are happy to welcome new brands to DIL family, catering to youth categories such as handcrafted tea, fresh cut fries and authentic Thai & Asian cuisine. The new partnerships reflect our commitment to bringing diverse, high-quality contemporary food & beverages brands to our customers, while driving sustainable growth for DIL.

With exclusive rights for these brands in India, DIL is consolidating its strategy of 'FOOD ON THE GO' and 'HOUSE OF BRANDS'. We remain committed to our investments across DIL's brand portfolio to broaden our reach, engage target consumers, and seize growth opportunities across the country. While we recognize the current subdued environment in the QSR industry, we are confident that the current headwinds are transient in nature. As firm believers in India's growth story, we are wellpositioned to capitalize on future opportunities and delivering value to all our stakeholders.'

Devyani International (DIL), among the fastest growing Chain Quick Service Restaurant (QSR) operators in the country, is the largest franchisee for Yum Brands (KFC & Pizza Hut) in India. The Company is also the sole franchisee for Costa Coffee Brand and stores in India. In addition, DIL caters to the South Indian vegetarian food lovers with Vaango, launched over a decade ago and is a prominent Brand in the Food Retail Business (FRB) category with its Food Courts. DIL has a strong presence across Airports in India where it serves a variety of F&B offerings.

The scrip advanced 4.57% to currently trade at Rs 178.55 on the BSE.