New Delhi: Quick service restaurant operator Devyani International Ltd on Thursday reported a 22 per cent rise in consolidated net profit at Rs 56.83 crore in the second quarter ended September.
The company, which is the largest franchisee of Yum Brands in India that includes Pizza Hut and KFC. It is also the franchisee of Costa Coffee. It had reported a net profit of Rs 46.59 crore in the year-ago period.
Revenue from operations in the second quarter of the current fiscal increased 44.82 per cent to Rs 747.42 crore as against Rs 516.08 crore in the year-ago period, Devyani International Ltd (DIL) said in a regulatory filing.
DIL’s total expenses in the latest September quarter were 44 per cent higher at Rs 681.88 crore compared to the corresponding period a year ago.
“In Q2 FY23, DIL opened a record 88 net new stores in a single quarter, taking the total operational stores to 1,096 as of September 30, 2022,” it said in an earnings statement.
It opened 32 new restaurants for KFC taking the total count to 423. While for Pizza Hut, it added 53 stores in India, taking the total count to 466 stores.
It was operating 88 stores of Costa Coffee as on September 30.
DIL also operates 29 stores of KFC in Nigeria and 20 stores of KFC and Pizza Hut in Nepal.
The company’s Chairman Ravi Jaipuria said it is expanding reach and investing in core brands to capitalise on the growth opportunities available.
“On the demand side, we have noticed that, as we are coming out of the pandemic, the consumer response is mixed for various categories. Continued retail inflation seems to have impacted the consumer demand to some extent in the staples and discretionary category,” he said.
Although the inflation in input costs is stabilising, the overall pricing levels continue to remain higher on a year-on-year basis.
“We have managed to take some judicious price corrections during early part of the financial year to protect the margins partially and are hoping that inflation will cool off as we go along, leading to enhanced consumer demand,” he said.
On Thursday, shares of DIL declined 2.19 per cent to close at Rs 183.30 on BSE.