Margin topping adds to Jubilant FoodWorks show

Company more selective in opening outlets and sweating existing ones to boost same-store sales growth

Jubilant FoodWorks reported a better-than-expected September quarter performance. The operating profit margin at 14.1 per cent was up 450 basis points year-on-year, the highest in 14 quarters. It was led by revenue performance and cost optimisation. Most analysts had estimated the margin number at 12-12.5 per cent.

Operating profit jumped 59 per cent over a year to Rs 102 crore; revenue grew nine per cent to Rs 726 crore. This was led by strong growth in volumes and a 5.5 per cent same-store sales growth (SSSG). The top line growth would have been better considering that the company passed on GST