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Barbeque-Nation Hospitality gains after Q1 net loss narrows to Rs 43.9 crore

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Barbeque-Nation Hospitality advanced 3.02% to Rs 915.65 after the company reported a consolidated net loss of Rs 43.9 crore in Q1 FY22 as against a net loss of Rs 60.5 crore in Q1 FY21.

Revenue from operations rose 10.4x to Rs 102 crore in Q1 FY22 from Rs 9.8 crore in Q1 FY21.

The company recorded same store sales growth of 960% in Q1 FY22. Delivery revenue was Rs 56 crore in Q1 FY22, as increase of 1251% over Q1 FY21.

The company reported EBITDA loss of approximately Rs 10 crore, primarily impacted due to second wave of pandemic lockdowns and ensuing restrictions.

The company reported a pre-tax loss of Rs 55.9 crore in the first quarter as against a pre-tax loss of Rs 73.6 crore in the same period last year.

The company opened 2 new Barbeque Nation restaurants during the quarter and 8 restaurants are under construction. It also opened 4 extension kitchens to increase the delivery footprint.

Kayum Dhanani, managing director, said: We have delivered strong performance in Q1 FY22 despite the second wave of pandemic and ensuing lockdowns and restrictions on dine-in businesses. While this quarter was a similar situation to Q1 FY21 we were better prepared and our diversification strategy have helped mitigate the decline in revenues.

We have transformed Barbeque Nation from a casual dining restaurant chain to a diversified food services company, focusing on building a strong delivery business and develop our digital assets.

Rahul Agrawal, CEO, said: The strength in our diversification strategy was evident during the quarter with strong growth in our delivery segment. With the dine-in segment facing the brunt of the pandemic induced lockdowns we maintained our momentum of growth in our delivery business, and this reinforces our belief that the delivery segment will allow us to leverage our assets, opening up an incremental business opportunity.

We have resumed our focus on network expansion and opened two Barbeque Nation restaurants in the first quarter and have a strong pipeline of under construction restaurants. In line with our strategy to expand delivery segment, we have launched four extension kitchens in July, thereby increasing our points of sale and catering to a larger customer base.

On the BSE, 17,978 shares of the company were traded in the counter so far compared with average daily volumes of 5,130 shares in the past two weeks. The stock hit a high of Rs 932.10 and a low of Rs 891.25 so far during the day.

The scrip has outperformed the market in past one quarter, up 45.45% as against Sensex's 8.69% rise during the same period.

Barbeque Nation is a food services company. It currently owns and operates 166 outlets across India and 3 other countries. The company pioneered the format of 'over the table barbeque' concept in Indian restaurants. The company has a majority stake in 'Red Apple Kitchen', which operates 11 Italian cuisine restaurants under the popular brand 'Toscano'.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Tue, August 03 2021. 14:05 IST