" We are also taking steady strides in the area of digital technologyadvanced analytics and design thinking to completely re-imagine consumer experience"
At JFL it is our core belief that sustained success is the outcome of a Company'sability to reinvent and reimagine. Aligned to this conviction FY 2017 was a period ofrelooking at every aspect of business functioning. It was a year wherein we reset ourstrategy direction and processes in response to a changing industry landscape embracingthe new while not losing sight of our values and purpose. Driven by these changes as welook towards FY 2018 we are distinctly better positioned for growth and value-creation.After more than a decade-long stint with the Company Mr. Ajay Kaul stepped down as CEOcum Wholetime Director in March 2017. There is no way to measure adequately hiscontribution towards making JFL what it is today. On behalf of the entire JFL team andBoard of Directors we would like to thank him for his stellar stewardship.
Post Ajay's decision to step down we have been able to implement a seamless transitionof leadership. We welcomed Mr. Pratik Pota for the role of CEO and Wholetime Director. Mr.Pota comes with rich experience and a great track record and we are confident that withhis experience and leadership he will steer the Company to greater heights.
And now to review the year gone by from the business perspective. In FY 2017 wecontinued to face a demanding market the toughness further compounded with thedemonetisation announced in November 2016. The impact to business revenue was considerableas consumers reduced discretionary spending. Our total income increased to Rs. 25605Million while our PAT was Rs. 673 Million. SSG stood at negative 2.4% largely affectedby the challenges in the macro-environment. Even in the backdrop of a challengingenvironment JFL continued to demonstrate several positives on the operational front.First our agility in responding to the liquidity crunch affirmed that we have over theyears built a resilient business model that can withstand headwinds. Second to drivebusiness excellence we embarked upon a number of cost optimisation projects. Thirdstaying true to our purpose of delighting our consumers we enhanced the appeal of themenu of both our brands. Fourth our sustained investments in technology enabled us toleverage the medium of online sales. We are taking steady strides in the area of digitaltechnology advanced analytics and design thinking to completely re-imagine consumerexperience. Simultaneously we are leveraging innovation not just on the product ormarketing side but for attaining greater across each of our processes. We believe drivenby these efforts the complete results of which are expected in the coming two-threeyears. At a time when the market environment continues to be difficult on profitablenetwork expansion. This strategy does not in any way dilute our intention to be presentwhere adequate opportunities exist. Also it is pertinent to share guided by our strictReturn on Investment (ROI) parameters we considered it necessary to decommission 14Domino's Pizza Restaurants and 20 Dunkin' Donuts Restaurants in the course of the year. Ason March 31 2017 the total number of Domino's Pizza Restaurants and Dunkin' DonutsRestaurants stand at 1117 and 63 respectively.
We are pleased to share that Domino's Pizza Sri Lanka operations have gainedsignificant headwinds. Going from strength to strength we remain confident of even biggerfeats in the coming years.
Looking ahead our focus will be on profitable growth and this perspective shall guidethe decisions we make across all our business operations. Further the strong emphasis weare placing on technology business excellence and of course customer-centricity alongwith cost rationalisation enables us to look to the future with confidence. being thefountainhead of our competitive advantage we remain committed to their empowerment andproviding them with an enriching workplace. We would like to take this opportunity tothank all our stakeholders for the trust they have reposed in us. We also remain gratefulto our Board Members for their continued support. While we move forward to realise ourgoals we are efficiency not leaving our past behind we are taking it with us onour next step of the journey.
With warm regards
we have recalibrated our expansion plans to focus
Shyam S. Bhartia
Chairman & Director
Hari S. Bhartia
Co-Chairman & Director