KFC India operator Devyani International reports 44% year-on-year revenue growth in Q1 FY25

Devyani International Limited, a quick service restaurant (QSR) operator, announced its financial results for the quarter ended June 30, 2024. The operator of KFC and Pizza Hut stores in India reported a 44.3% year-on-year (YoY) growth in revenue at ₹1,221.9 crore in the June quarter, compared to ₹846.6 crore in the previous year.

First-quarter revenue grew 16.7% sequentially from ₹1,047.1 crore in the fourth quarter. Of this, KFC India contributed ₹555 crore, while Pizza Hut India contributed ₹182 crore and Costa Coffee contributed ₹45 crore.

Devyani International Limited reported a net profit of ₹22.43 crore in the June quarter, a significant change from a loss of ₹1.59 crore in the previous year. Net profit also saw a significant sequential increase, compared to a loss of ₹48.95 crore in the previous quarter.

Consolidated EBITDA for the quarter ended June 2024 stood at ₹223.4 crore with margins improving to 18.3% from 16.6% in the previous quarter. However, on a year-on-year basis, EBITDA margin declined by 2.2% from 20.5% in Q1 FY24.

On Monday, August 5, shares of Devyani International Limited initially gained 0.22% on the BSE to hit an intraday high of ₹178.55 per piece. However, the stock lost all its gains as the day progressed. At 1:40 PM, it was trading at ₹172.7 per piece, down 3.06%.

The company announced the addition of 54 net new stores to better serve consumers in under-penetrated markets. As of June 30, 2024, the total number of DIL stores has increased to 1,836. In a stock exchange filing, the company said it plans to open 250 to 275 new stores in fiscal 2025.

Ravi Jaipuria, Non-Executive Chairman, Devyani International Limited, said, “We saw an improvement in DIL’s performance in Q1, driven by seasonality and cost leverage on the back of improved ADS across our businesses. As previously announced, we are on track to achieve a total store count of 2,000 stores in the current fiscal year.”

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