Westlife Development records loss of Rs 58 cr in June quarter

Westlife Development reported a consolidated net loss of Rs 57.56 crore in Q1 FY20 compared with net profit of Rs 6.44 crore in Q1 FY20.

The company owns Hardcastle Restaurants - the master franchisee of McDonald's restaurants for west and south India.

Total Revenues declined 75.4% on a year-on-year (YoY) basis to Rs 93.89 crore in the June quarter.

The company reported a negative operating EBITDA of Rs 57.68 crore with a negative operating EBITDA margin of 61.4% in Q1 June 2020. It had reported a operating EBITDA of Rs 32.63 crore with a operating EBITDA margin of 8.5% in Q1 June 2019.

The Quick Service Restaurants operator recorded a pre-tax loss of Rs 76.82 crore in Q1 FY21 as against pre-tax profit of Rs 8.51 crore in Q1 FY20.

The company started seeing green shoots in the business starting June 2020, as the lock-down started easing in select markets. The company's convenience platform which includes Delivery, Take-Out and Drive-Thru channels showed great results as sales from these platforms bounced back to pre-COVID levels, for operational stores. Per day per store McDelivery sales bounced back to 70% of pre-COVID levels and daily take-out sales from operational stores surged 1.7 times vis-vis pre-COVID levels.

Additionally, convenience platform sales came back to pre-COVID levels for operational Drive-thru stores. The company is confident of growing this momentum and further accelerating sales in the coming months.

Westlife Development (WDL) focuses on setting 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.

The scrip slipped 0.70% to Rs 352.20. It traded in the range of 352.20 and 355 during the day.

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