Jubilant FoodWorks Q4 net profit plunges 76% at Rs 6.71 cr

Jubilant FoodWorks had posted net profit of Rs 27.83 cr in corresponding period of previous fiscal

Jubilant FoodWorks on Monday reported a 75.88 per cent fall in standalone net profit at Rs 6.71 crore for the fourth quarter ended March 31, 2017.

The company — which operates Domino's and Dunkin' Donuts outlets in India — attributed negative same store growth (SSG) and increase in cost on account of expansion for fall in earnings before interest, tax, depreciation and amortisation (EBITDA).

Jubilant FoodWorks had posted a net profit of Rs 27.83 crore in the corresponding period of previous fiscal.

Its total income stood at Rs 616.35 crore for the quarter under review, down marginally from Rs 620.97 crore in the same period a year ago, the company said in a BSE filing.

During the quarter, the company also reported exceptional cost of Rs 12.17 crore related to one time separation cost incurred as part of manpower rationalisation exercise carried out by the company.

Jubilant FoodWorks Ltd Chairman Shyam S Bhartia and Co- Chairman Hari S Bhartia said the company's topline growth was adversely impacted in the quarter and the year due to 'unprecedented challenges'.

"The company took immediate steps to cut costs and improve efficiencies which enabled us to minimise the adverse impact of slowing sales on the bottom line. We believe that the short-term headwinds are now behind us and firmly believe in the long-term growth potential of our business," they added.

In a separate filing, Jubilant FoodWorks said its Board of Directors have recommended a dividend of Rs 2.50 per equity share for the financial year ended March 31, 2017.

The company also said its Board of Directors have approved the appointment of Berjis Minoo Desai as an Independent Director for a term of 5 years and appointment of Shamit Bhartia and Aashti Bhartia as Non-Executive Non Independent Directors.

At present, Jubilant FoodWorks operates 1,127 Domino's restaurants in 265 cities and 60 Dunkin' Donuts outlets across 16 cities in India.

Shares of the company closed 5.30 per cent lower at Rs 939.30 on BSE.