he company beat street expectations to report a 25% rise in net profit for the June quarter
During the quarter, it also reported exceptional cost of Rs 12.17 cr related to one time separation
Though Jubilant Foodworks (Jubilant)'s net profit was pulled down by one-offs in the March 2017 quarter (Q4), investors have quite a few reasons to worry. Fall in its same store sales growth (SSSG), for instance. SSSG denotes the sales growth from the stores that were operational in the comparable period. Continued impact of demonetisation as well as accelerated pace of store closures (those making losses) impacted this metric in Q4. Withdrawal of the buy one, get one or BOGO offer in the quarter further impacted the SSSG. As the company focuses on improving SSSG as well as driving operational efficiencies, not only has it added lesser number of stores in FY17, but is also guiding for much lower store adds than it has historically. On one hand, the management is focusing on improving SSSG and the value proposition offered to the consumers, while on the other, it is also driving cost and operational efficiencies to improve store-level profitability. Given the slowing consumption ...
Jubilant FoodWorks had posted net profit of Rs 27.83 cr in corresponding period of previous fiscal
The firm had posted Rs 29.3-crore profit during the same quarter last year
Even as company is taking measures to drive cost efficiencies, rich valuations remain a concern
Despite recent correction, continued demand pressures in the business will weigh on the stock
Its same store growth stood at 4.2% compared to 3.2% during the year-ago period
Improvement in same-store sales growth, clarity on appointment of new CEO are key catalysts
Shares of JFL were trading 3.89 per cent down at Rs 1,099.40 on BSE
The stock dipped 8% to Rs 1,055 after the EBITDA margin declined 62 basis points to 9.7% in Q2FY17.
Quick service restaurants are fighting to keep growth intact as the overall consumer appetite for discretionary spending wanes
With two top exits and uncertainty on growth strategy, stock likely to remain under pressure
In terms of volume, 4.64 lakh shares of the company were traded on the BSE and over 53 lakh shares changed hands at the NSE during the day
The stock slipped 8% to Rs 924 on the BSE in early morning trade on back of heavy volumes.
The move comes following Jubilant Foodworks's weak SSG performance for the first quarter of FY 2017
A decline of 3.2 per cent is the lowest in seven quarters for the food service major.
The company reported 31.08% fall in its June quarter net profit to Rs 19 crore
Subdued demand, high promotions to weigh on margin
Jubilant FoodWorks dipped 12%, while Westlife Development fell 10% on the BSE in intra-day trade.