Devyani International Q3 Results: Company Reverses Profits, Reports Rs 7.6 Crore Net Loss
Devyani International, a prominent Yum Brands franchisee in India, has reported a net loss of Rs 7.6 crore for the third quarter ended December 2024. This marks a reversal from the net profit of Rs 5.1 crore reported in the same period last year.
Stock Market Reaction
Following the release of the results, Devyani International's stock experienced a decline, falling 5% to a day's low of Rs 169.10 on the BSE.
Key Financial Figures
- Net Loss: Rs 7.6 crore (compared to a profit of Rs 5.1 crore in the year-ago period).
- Consolidated Revenue: Rs 1,290 crore, a growth of 53.5% YoY.
- Nine-Month Revenue: Rs 3,740 crore, a rise of 49% YoY.
- Consolidated Reported EBITDA: Rs 220 crore, with margins at 16.9%, an improvement of 60 basis points against the previous quarter.
Store Expansion and Growth Strategy
Devyani International emphasized its store expansion strategy as a key driver of growth. In Q3, the company added 111 net new stores, bringing the total store count to 2,032 as of December 31, 2024. The company has also expanded its KFC operations in Thailand, reaching a total of 305 stores as of the same date.
Management Commentary
Ravi Jaipuria, Non-Executive Chairman of Devyani International, commented, "Reflecting on Q3, our store expansion strategy has been a key driver of the company’s growth. We remain committed to this approach, ensuring a balance between expansion and store-level performance...I am glad to share that our brands continue to demonstrate consistency and excellence.”
Future Outlook
Devyani International reported positive same-store sales growth (SSSG) momentum across core brands and geographies. The company is on track to commence the operation of new Brands by Q1 of FY 26.
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