Capitaline

Results 18-May-23

Analysis

Jubilant Foodworks

NP down 70.50%

For quarter ended March 2023, consolidated Net sales (including other operating income) of Jubilant Foodworks has increased 7.98% to Rs 1269.85 crore compared to quarter ended Mar 2022. Operating profit margin has declined from 24.64% to 19.62%, leading to 14.03% decline in operating profit to Rs 249.12 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 21.74% to 23.02%. Purchase of finished goods cost rose from 1.18% to 1.56%. Employee cost increased from 17.39% to 17.56%. Other expenses rose from 34.98% to 38.16%.

Other income rose 56.25% to Rs 19.75 crore. PBIDT fell 11.10% to Rs 268.87 crore. Provision for interest rose 14.79% to Rs 52.87 crore. Loan funds rose to Rs 2,553.74 crore as of 31 March 2023 from Rs 2,106.10 crore as of 31 March 2022. Inventories rose to Rs 177.00 crore as of 31 March 2023 from Rs 161.18 crore as of 31 March 2022. Sundry debtors were higher at Rs 28.73 crore as of 31 March 2023 compared to Rs 22.05 crore as of 31 March 2022. Cash and bank balance declined from Rs 563.36 crore as of 31 March 2022 to Rs 256.91 crore as of 31 March 2023. Investments declined from Rs 926.78 crore as of 31 March 2022 to Rs 821.81 crore as of 31 March 2023.

PBDT fell 15.75% to Rs 216 crore. Provision for depreciation rose 24.07% to Rs 131.55 crore. Fixed assets increased to Rs 3,534.05 crore as of 31 March 2023 from Rs 2,719.56 crore as of 31 March 2022. Intangible assets increased from Rs 63.58 crore to Rs 137.96 crore.

Profit before tax down 43.83% to Rs 84.45 crore. Share of profit/loss was 90.84% lower at Rs -31.05 crore. Provision for tax was expense of Rs 24.86 crore, compared to Rs 37.67 crore. Effective tax rate was 46.55% compared to 28.18%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company decreased 70.50% to Rs 28.54 crore.

Equity capital stood at Rs 131.97 crore as of 31 March 2023 to Rs 131.97 crore as of 31 March 2022. Per share face Value remained same at Rs 2.00.

Promoters’ stake was 41.94% as of 31 March 2023 ,compared to 41.94% as of 31 March 2022 . Promoters pledged stake was 1.66% as of 31 March 2023 ,compared to 1.67% as of 31 March 2022 .

Full year results analysis.

Net sales (including other operating income) of Jubilant Foodworks has increased 17.34% to Rs 5158.25 crore. Operating profit margin has declined from 25.22% to 22.32%, leading to 3.86% rise in operating profit to Rs 1,151.56 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 21.24% to 22.70%. Purchase of finished goods cost rose from 1.34% to 1.58%. Employee cost increased from 17.46% to 17.55%. Other expenses rose from 34.75% to 35.87%.

Other income rose 21.91% to Rs 50.41 crore. PBIDT rose 4.51% to Rs 1201.97 crore. Provision for interest rose 14.28% to Rs 201.23 crore. Loan funds rose to Rs 2,553.74 crore as of 31 March 2023 from Rs 2,106.10 crore as of 31 March 2022. Inventories rose to Rs 177.00 crore as of 31 March 2023 from Rs 161.18 crore as of 31 March 2022. Sundry debtors were higher at Rs 28.73 crore as of 31 March 2023 compared to Rs 22.05 crore as of 31 March 2022. Cash and bank balance declined from Rs 563.36 crore as of 31 March 2022 to Rs 256.91 crore as of 31 March 2023. Investments declined from Rs 926.78 crore as of 31 March 2022 to Rs 821.81 crore as of 31 March 2023.

PBDT rose 2.74% to Rs 1000.74 crore. Provision for depreciation rose 23.62% to Rs 485.89 crore. Fixed assets increased to Rs 3,534.05 crore as of 31 March 2023 from Rs 2,719.56 crore as of 31 March 2022. Intangible assets increased from Rs 63.58 crore to Rs 137.96 crore.

Profit before tax down 11.38% to Rs 514.85 crore. Share of profit/loss was 151.15% lower at Rs -26.12 crore. Provision for tax was expense of Rs 135.7 crore, compared to Rs 145.17 crore. Effective tax rate was 27.77% compared to 25.77%.

Minority interest increased 92.61% to Rs -0.17 crore. Net profit attributable to owners of the company decreased 15.98% to Rs 353.20 crore.

Equity capital stood at Rs 131.97 crore as of 31 March 2023 to Rs 131.97 crore as of 31 March 2022. Per share face Value remained same at Rs 2.00.

Promoters’ stake was 41.94% as of 31 March 2023 ,compared to 41.94% as of 31 March 2022 . Promoters pledged stake was 1.66% as of 31 March 2023 ,compared to 1.67% as of 31 March 2022 .

Cash flow from operating activities increased to Rs 1,026.16 crore for year ended March 2023 from Rs 930.02 crore for year ended March 2022. Cash flow used in acquiring fixed assets during the year ended March 2023 stood at Rs 842.03 crore, compared to Rs 458.38 crore during the year ended March 2022.

Other Highlights

Board recommendation of dividend of Rs 1.20 (60%) per equity share of face value of Rs 2 each for Financial Year 2022-23.

Company opened 56 new Domino’s stores in Q4FY23 and record 250 new stores in FY23.

In Q4 FY23, Dine-in and Delivery channel registered 11.5% and 5.7% YoY growth, respectively.

In Q4 FY23, OLO to Delivery Sales stood at 97.9%.

In FY23, Domino’s LFL and SSG grew by 8.9% and 6.0% YoY respectively

The enrolment to loyalty program, Domino’s Cheesy Rewards grew by 28.3% versus the prior quarter to 13.6 million and the loyalty order contribution reached 45% in March 2023.

In Q4 FY23, Sri Lanka, system sales growth was 14.1% YoY and the Company opened one new stores taking the network strength to 48 stores. In Bangladesh, system sales grew by 51.6% YoY and the Company accelerated the pace of network expansion and opened record four new stores in a quarter taking the network to 17 stores.

Management Comments :
Mr. Shyam S. Bhartia, Chairman and Mr. Hari S. Bhartia, Co-Chairman, Jubilant FoodWorks Limited said, “We are pleased that we have become a Rs. 5,000 crore turnover company in this fiscal year. This achievement is a result of our never-ending efforts to elevate consumer experience through our portfolio of brands, not hesitating to make deep investments in commissaries and digital assets for continued future growth while maintaining very high financial discipline. There are near term concerns around historic high inflation and slowing market growth, but we are confident on our unique ecosystem’s ability to tap on the potential that lies ahead of us and reorient the business to deliver sustained profitable growth.”

Mr. Sameer Khetarpal, CEO and MD, Jubilant FoodWorks Limited said, “We are accelerating efforts to execute and deliver on the plans we’ve put into action to revert to high top-line growth while significantly improving all aspects of our cost structure. This quarter saw encouraging progress on registering order led growth while limiting the impact of inflation on our gross margins through a series of well-timed interventions. As we step into the new fiscal year, we derive confidence from the strength of our brands, operational prowess, quality of innovation and commitment of our people to navigate the business well in the current environment.”

Jubilant Foodworks : Consolidated Results

	Quarter ended			Year ended
Particulars	202303	202203	Var.(%)	202303	202203	Var.(%)
Net Sales (including other operating income)	1,269.85	1,175.97	7.98	5,158.25	4,396.12	17.34
OPM (%)	19.62	24.64	-502 bps	22.32	25.22	-290 bps
OP	249.12	289.79	-14.03	1,151.56	1,108.78	3.86
Other Inc.	19.75	12.64	56.25	50.41	41.35	21.91
PBIDT	268.87	302.43	-11.10	1,201.97	1,150.13	4.51
Interest	52.87	46.06	14.79	201.23	176.09	14.28
PBDT	216.00	256.37	-15.75	1,000.74	974.04	2.74
Depreciation	131.55	106.03	24.07	485.89	393.05	23.62
PBT	84.45	150.34	-43.83	514.85	580.99	-11.38
Share of Profit/(Loss) from Associates	-31.05	-16.27	-90.84	-26.12	-10.4	-151.15
PBT before EO	53.4	134.07	-60.17	488.73	570.59	-14.35
EO Income	0	-0.39	-	0	-7.33	-
PBT after EO	53.4	133.68	-60.05	488.73	563.26	-13.23
Taxation	24.86	37.67	-34.01	135.7	145.17	-6.52
PAT	28.54	96.01	-70.27	353.03	418.09	-15.56
Minority Interest (MI)	0	-0.75	-	-0.17	-2.3	92.61
Net profit	28.54	96.76	-70.50	353.2	420.39	-15.98
P/(L) from discontinued operations net of tax	0	0	-	0	0	-
Net profit after discontinued operations	28.54	96.76	-70.50	353.2	420.39	-15.98
EPS (Rs)*	0.43	1.47	-70.59	5.35	6.45	-17.07

* EPS is on current equity of Rs 131.97 crore, Face value of Rs 2, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database

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