Devyani International Q2 profit drops 37% to Rs 35.8cr, revenue up 9.6% to Rs 819.5 cr

New Delhi: Devyani International Ltd, a quick service restaurant (QSR) operator, on Tuesday reported a 37 per cent decline in its consolidated net profit to Rs 35.82 crore for the July-September quarter due to the impact of high inflation on the consumer sentiment.

The company, which is the largest franchisee of Yum! Brands in India for its brands Pizza Hut and KFC, had reported a net profit of Rs 56.83 crore in the July-September quarter of the last year.

Devyani International Ltd's (DIL) revenue from operations during the quarter was up 9.63 per cent to Rs 819.47 crore as against Rs 747.42 crore in the year-ago period, according to an exchange filing.

"High inflation across industries and categories from a macro-economic perspective has led to a short-term impact on consumer sentiment and spending in the last few quarters. Despite this, our performance remains resilient, and we continue to invest in the business for long-term growth," said DIL Non-Executive Chairman Ravi Jaipuria.

DIL's total expenses in the September quarter were at Rs 793.04 crore, up 16.30 per cent.

Sharing brand revenues in the September quarter, DIL said KFC contributed Rs 509 crore and Rs 184 crore from Pizza Hut and Rs 34.6 crore from Costa Coffee. DIL also holds the franchise of The Coca-Cola Company's coffee chain brand Costa Coffee.

Total income of DIL in the September quarter was at Rs 826.04 crore, up 9.85 per cent year-on-year.

"The Company expanded its presence across brands and geographies, opening 68 net new stores in Q2 FY24," it said.

As of September 30, 2023, DIL operates 594 KFC stores, 539 Pizza Hut stores, and 146 Costa Coffee stores, with a total of 1,358 system stores across all geographies.

It is "on track to open 250 – 275 new stores in FY24," said DIL.

"We are hopeful that a rebound in consumer spending will take place in the next few quarters, positioning us for success in the dynamic and evolving QSR landscape,” said Jaipuria.

Shares of Devyani International Ltd on Tuesday settled at Rs 193.05 on BSE, up 1.87 per cent from the previous close.