Westlife Development posts Rs 2.06-crore net profit in Q2

Westlife Development, which runs McDonald’s restaurants in the west and south of India, posted a net profit of Rs 2.06 crore for the three months ended September 2017, its second straight quarter of profit in this financial year. In the June quarter, it had reported a net profit of Rs 0.22 crore.

While the revenue growth was 12.8 per cent, at nearly Rs 265 crore for the September quarter, the same-store sales growth (SSG) — a crucial metric tracked by analysts of stores one year and above — was at 8.4 per cent, the company’s ninth consecutive quarter of growth on that front. 

Westlife Development is the third key food service operator after Jubilant FoodWorks and Yum! Brands in India to report strong numbers in Q2, pointing to a recovery in the sector, an analyst said.

SSG for Jubilant FoodWorks was at 5.5 per cent for the July-September period and Yum! Brands reported system sales growth of 8 per cent and 7 per cent for KFC and Pizza Hut, respectively in India.

Amit Jatia, vice-chairman, Westlife Development, said that the September quarter SSG was consistent with the figure achieved by the firm in the previous period.