Result-Analysis-Elite-Wealth
Particulars (In Rs. Cr.) Q2FY22 Q1FY22 Q2FY21 QoQ % YoY%
Revenue from Operations 516.08 352.70 229.94 46.32% 124.44%
Other Income 5.17 4.67 26.03 10.71% -80.14%
Total Income 521.25 357.37 255.97 45.86% 103.64%
Cost of Goods Sold 149.67 101.63 74.08 47.27% 102.04%
Employee Benefit Expenses 59.43 53.68 34.7 3.35% 18.53%
Other Expenses 178.87 140.59 97.23 27.23% 83.97%
EBITDA 128.11 56.80 23.93 125.55% 435.35%
Finance Cost 32.79 32.39 42.17 1.23% -22.24%
Depreciation 52.64 48.19 65.81 9.23% -20.01%
Profit After Tax 45.70 -28.88 -66.70 N.A N.A
EBITDA Margin 24.82% 16.10% 10.41% 872 1441
PATM (%) 8.77% N.A N.A N.A N.A

Result Highlights: 

  • Revenue rose 46.32% QoQ and 124.44% YoY to Rs 516.08 crore. India – KFC revenues up 141%, Pizza Hut up 111%. Healthy growth in International business. Revenue growth – 90% to Rs. 50 Crore.

  • DIL’s Revenue from operation from last 5 Quarter is growing at CAGR of 22.40%.

  • Robust Same Store Sales Growth (SSSG); KFC @72% and Pizza Hut @76%.

  • EBITDA Margin expanded to 24.82% from 16.10% last quarter.

  • PAT positive for the quarter at Rs 46.59 Cr due to sustainable cost optimizations & new stores additions.

  • Company has Positive Cash flow Operation of Rs 192.34 Cr. Company has a free cash flow of Rs 35.22 Crore.

  • DIL signed revised Development Agreement signed with Costa Coffee.

  • DIL has added 111 new stores (including Nepal & Nigeria) during H1 FY2022. 

Management commentary: 

  • Ravi Jaipuria, Chairman, Devyani International Limited said “Despite the pandemic, we have continued with our growth strategy to steadily expand presence across new cities while simultaneously broadening our foothold in existing markets. We have opened 111 net new stores across core brands in the 6 months ended September 30, 2021, with 68 net new stores getting added in Q2 FY22. Our long-term focus is on consolidating our presence in key metro cities while tapping into smaller towns, enabling us to take our brands closer to our customers.”

  • Management indicated that “The foodservice industry is expected to grow at a CAGR of 12% to 15% in future. QSRs being the largest constituent of this segment will be a key beneficiary and will lead this growth. DIL with its multiple strong and well recognized western and Indian QSR brands stand to gain the most as we continue to expand our footprint in India.”

  • Management said” We have seen a great recovery on the demand side as the Covid 19 restrictions ease and the vaccination coverage improves. Leveraging this demand momentum across our markets, we expect to deliver a strong operational and financial performance. We are also cognizant of input cost inflation across various industries including QSR on both capex and opex side. We have built in multiple levers in our business to mitigate the impact of input inflation and we hope to deliver consistent results for all of you.”

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Elite Wealth Limited does/does not do business with companies covered in its research reports. Investors should be aware that the Elite Wealth Limited may/may not have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only information in making their investment decision and must exercise their own judgment before making any investment decision.
For analyst certification and other important disclosures, see the Disclosure Appendix, or go to www.elitewealth.in. Analysts employed by Elite Wealth Limited are registered/qualified as research analysts with SEBI in India.( SEBI Registration No.: INH100002300)
Disclosure Appendix
Analyst Certification (For Reports)
Israil Khan, Elite Wealth Limited, suhail@elitewealth.in
The analyst(s) certify that all of the views expressed in this report accurately reflect my/our personal views about the subject company or companies and its or their securities. I/We also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report. Unless otherwise stated, the individuals listed on the cover page of this report are analysts in Elite Wealth Limited.
As to each individual report referenced herein, the primary research analyst(s) named within the report individually certify, with respect to each security or issuer that the analyst covered in the report, that:
(1) all of the views expressed in the report accurately reflect his or her personal views about any and all of the subject securities or issuers; and
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For individual analyst certifications, please refer to the disclosure section at the end of the attached individual notes.
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