Devyani International posts net loss of Rs 48.95 crore in Q4

New Delhi: Quick service restaurant operator Devyani International Ltd on Tuesday reported a consolidated net loss of Rs 48.95 crore in the fourth quarter ended March 31, 2024, impacted by forex translation loss due to the devaluation of Nigerian currency.

The company had posted a consolidated net profit of Rs 59.88 crore in the fourth quarter of the previous fiscal, Devyani International said in a regulatory filing.

Consolidated revenue from operations during the quarter under review stood at Rs 1,047.08 crore as against Rs 754.98 crore in the corresponding period a year ago, it added.

Total expenses were higher at Rs 1,057.32 crore as compared to Rs 724.77 crore in the year-ago quarter, it added.

During the quarter ended March 31, 2024, and the year ended March 31, 2024, due to significant devaluation of the Nigerian currency, the Nigerian subsidiary of the group has recognised Rs 42.37 crore and Rs 89.7 crore devaluation impact on account of translation loss of USD denominated liabilities in Nigerian subsidiary's financial information as at March 31, 2024, and year ended March 31, 2024, respectively, the filing said.

"Considering the significance of the amount involved, the said exchange translation loss has been presented as an "exceptional item" in consolidated financial results of the group," it said.

Devyani International Ltd (DIL) is the largest franchisee for Yum Brands (KFC and Pizza Hut) in India. It is also the sole franchisee for Costa Coffee Brand and stores in India. Besides, it also has the South Indian vegetarian chain Vaango.

For the fiscal ended March 31, 2024, the consolidated net loss was at Rs 9.65 crore. The company had posted a consolidated net profit of Rs 262.51 crore in the year ended March 31, 2023, according to the filing.

In FY24, consolidated revenue from operations was at Rs 3,556.32 crore as against Rs 2,997.72 crore in FY23.

"In 2024, we have diligently focused on our strategic expansion goals. Over the course of the year, we opened 256 new stores, including 47 in the fourth quarter. As of March 31, our total store count has reached 1,782, including the 283 KFC stores we acquired in Thailand on January 18, 2024," Devyani International Chairman Ravi Jaipuria said.

He said alongside the global expansion, the company has also been working on a strategy to enhance its domestic footprint of the food courts business in response to India's emergence as a major destination for travel, tourism, and shopping.

"The domestic travel market is picking up very well and we are seeing religious tourism as one of the important thrust areas. India is also gaining importance in the international markets for medico tourism and a value-for-money shopping destination," Jaipuria said.

DIL said the investments in infrastructure and the revitalisation of the travel and tourism sector augur well for the quick service restaurant (QSR) industry.

"The outlook for India in 2024 appears optimistic, and DIL is well poised to seize the opportunity presented by this favourable trend," it said.

The company said its board has approved the appointment of Kamaljit Singh Bedi as CEO - Institutional Business and New Business Ventures with effect from May 14, 2024.