Devyani (DEVYANI) Q4 17/18 earnings summary

Executive summary

• FY18 consolidated revenue grew 7.5%; 65 outlets opened and 29 loss-making outlets closed, with profitability recovering from FY17 losses.

• Growth initiatives included airport locations, product innovation, cost optimization, technology upgrades, and loyalty programs.

Financial highlights

• Consolidated revenue from operations was ₹11,106.12 million vs ₹10,474.99 million; total income was ₹11,356.70 million vs ₹10,561.89 million.

• Consolidated PBT was ₹302.84 million vs loss of ₹1,784.75 million; net profit was ₹311.24 million vs loss of ₹1,798.66 million.

• Profit attributable to owners was ₹459.71 million; basic EPS ₹4.33 and diluted EPS ₹4.25, vs loss attributable to owners of ₹1,200.77 million and EPS of (₹11.31) in FY17.

• Standalone revenue from operations was ₹8,806.16 million vs ₹8,074.16 million; standalone net profit was ₹546.69 million vs loss of ₹726.21 million.

• Reported consolidated impairment reversal was ₹119.19 million; other income included ₹89.96 million of excess provisions written back.

Outlook and guidance

• Plans included further KFC and Pizza Hut openings and expansion into Nepal, Nigeria, and the UK.

• UK subsidiary funding supported launch of the TWG Tea business; management expected growth in the Nigerian step-down subsidiary's operations during FY19.