Westlife Development jumps after posting turnaround in Q3

Westlife Development gained 5.9% to Rs 351.70 at 13:45 IST on BSE after reporting consolidated net profit of Rs 7.75 crore in Q3 December 2017 compared with net loss of Rs 1.71 crore in Q3 December 2016.

The result was announced during market hours today, 5 February 2018.

Meanwhile, the S&P BSE Sensex was down 413.32 points or 1.18% at 34,653.43. The BSE Mid-Cap index was down 157.64 points or 0.95% at 16,417.06, outperforming the Sensex.

On the BSE, 50,385 shares were traded on the counter so far as against the average daily volumes of 1.55 lakh shares in the past one quarter. The stock had hit a high of Rs 351.75 and a low of Rs 319.20 so far during the day. The stock had hit a 52-week high of Rs 388.85 on 23 January 2018. The stock had hit a 52-week low of Rs 201 on 24 May 2017.

The stock had outperformed the market over the past 30 days till 2 February 2018, gaining 4.83% compared with 3.71% rise in the Sensex. The scrip had also outperformed the market in past one quarter, gaining 36.57% as against Sensex's 4.45% rise. The scrip had also outperformed the market in past one year, rising 43.63% as against Sensex's 24.23% rise.

The mid-cap company has equity capital of Rs 31.12 crore. Face value per share is Rs 2.

Westlife Development's consolidated total revenues rose 26.2% to Rs 305.19 crore in Q3 December 2017 over Q3 December 2016.

Commenting on Q3 results Amit Jatia, Vice-Chairman of Westlife Development said that company's bold initiative to bring unique & innovative fusion products under 'Flavours Without Borders' delivered outstanding results and aided in increasing footfalls significantly. The company has also been able to optimise crew and utility costs, resulting in a healthy operating leverage to the P&L accounts.

The brand extensions are contributing significantly to the business. McDelivery has been an outperformer this quarter and has been a significant growth driver. McCafhas once again beaten its best and has clocked the highest ever average sales on a per day basis.

Experience of the Future (EOTF) continues to be the company's focus area. McDonald's strategy to make big bold moves has always found favour with its customers.

McDelivery's increasing footprint and tie ups with key aggregators and payment networks is contributing to its phenomenal growth. Royalty payment continues to be at 4% for FY 2019 as well.

Westlife Development focuses on putting up and operating quick service restaurants (QSR) in India through its subsidiary Hardcastle Restaurants (HRPL). The company operates a chain of McDonald's restaurants in west and south India, having a master franchisee relationship with McDonald's Corporation USA, through the latter's Indian subsidiary.

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