Coffee Day Enterprises (CDEL) reported a net profit of Rs 1,509 crore in the first quarter of this financial year as it booked a one-time gain of Rs 1,659 crore from the sale of Mindtree stake.
Net profit stood at Rs 17 crore in the first quarter of last financial year, while it was at Rs 26 crore in Q4 of FY19. Excluding the gain, CDEL, however, reported a loss of Rs 156.6 crore for the April-June period.
The Bengaluru-headquartered firm’s revenues stood at Rs 942 crore, a fall of 2 per cent on a year-on-year basis. Sequentially, revenues declined 29 per cent. After the demise of CDEL group chairman V G Siddhartha, the conglomerate — with business interests in coffee to tech park — had taken approval to delay its Q1 result announcement by 45 days.
CDEL’s flagship coffee retailing arm, Coffee Day Global posted a loss of Rs 60.8 crore in Q1 of FY20 as the retailer closed down 280 cafe’s, resulting in an outgo of Rs 19 crore. “Same-store sales growth was down 4 per cent, while average sales per day was holding firm at Rs 15,445 in a challenging environment,” the company said.
The firm said its consolidated financials depend on the investigation report that is likely to come out in few weeks.
As part of the company’s deleveraging efforts, the board on Wednesday authorised Siddhartha’s wife Malavika Hegde (who is on CDEL board) or CFO of Coffee Day Global Jayaraj Hobli to rope in agencies for conducting due diligence to divest stake in CDGL. The company had already appointed IDFC Securities in September this year to explore stake sale possibilities in its coffee retailing unit.
KKR India CEO Sanjay Nayar quits board
Coffee Day Enterprises said private equity firm KKR India’s Chief Executive Sanjay Nayar had resigned from the board after nearly a nine-year stint. The private equity firm owns 6.07 per cent stake in Coffee Day, while NLS Mauritius holds the maximum 10.61 per cent stake. With the resignation of Nayar, the board strength has now come down to three.