Jubilant Food's profit plunges 32% in Q3

Hit by demonetisation and growing material costs, Jubilant FoodWorks’ net profit plunged 31.7% year-on-year to Rs 20 crore in the quarter ended 31 December. 

The firm had posted Rs 29.3-crore profit during the same quarter last year. Its net sales stood at Rs 659 crore – 4% higher than Rs 634 crore reported in the same quarter previous year.

 “The quarter mirrored the challenges faced by economy related to liquidity crunch. However, being part of the organised space along with our continued thrust on digitisation, gave us the requisite agility to accept online payments and thereby contain the impact as the sector migrated to more and more cashless payment mode”, said Ajay Kaul, chief executive, Jubilant FoodWorks Limited.

During the quarter, same-store growth declined 3.3% compared to a 2% increase during October-December, 2015. Its cost of materials grew 12.8% y-o-y to Rs 145 crore from Rs 128 crore.

Jubilant added 32 new Dominos restaurants during the period and it closed down one, taking its total outlet count to 1,107 compared to 990 at the end of 2015. It also entered 10 new cities during the quarter. 

As of December-end, its restaurant footprint is spread across 259 cities – up from 225 cities a year ago. Online orders out of the total delivery orders grew to 49% from 36% during the year-ago period.

Jubilant FoodWorks’ stock closed at Rs 1,007.20 at the end of the day on Bombay Stock Exchange – 9.61% higher.

	Oct-Dec, 2015	Oct-Dec, 2016	Change
Net Sales	633.8	658.8	4%
Net Profit	29.3	20	-31.7%