Jubilant FoodWorks Q2 net up twofold at Rs 18 cr

Jubilant FoodWorks, which operates fast food chain Domino's Pizza in India, today posted an over two-fold jump in its net profit to Rs 18.43 crore in the quarter ended September 30, over the same period last fiscal.

The company, which had a net profit of Rs 7.77 crore in the quarter ended September 30, 2009, attributed the robust growth to addition of new stores and healthy same store sales growth during the period.

"Our growth in this quarter is due to addition of new stores, good same store sales and expansion of our product portfolio during the period," Jubilant FoodWorks (JFL) Chief Executive Officer Ajay Kaul told reporters in a conference call.

During the quarter, the company said it has opened 18 outlets across the country and has registered a same store revenue growth of 43.8 per cent. At present, the firm has a presence in 79 cities, taking it from 69 last year.

The company's net sales stood at Rs 163.30 crore, 67 per cent increase from Rs 97.75 crore posted in the corresponding quarter last fiscal.

During the period, the company's total expenditure increased to Rs 13.37 crore from Rs 8.25 crore in the year ago period on account of opening of new stores and increased volume sales.

Going forward, the company plans to take the total number of Domino's Pizza stores to 375 by the end of the fiscal. It currently has 339 outlets across the country.

Besides, as part of its expansion plan the company also looks to hire as many as 2,500 people by the end of the fiscal.

"Every time we open a new store we need around 25-30 people. We open around 70 stores a here. So every year we recruit around 2000-2500 people. So we will maintain that number this year as well," Kaul said.