Devyani (DEVYANI) Q4 18/19 earnings summary

Executive summary

• FY19 consolidated revenue from operations rose 21% YoY to ₹1,344.3 crore, while EBITDA fell 32% to ₹80.7 crore and the year ended with a ₹66.4 crore loss.

• Expanded the outlet network, added 13 KFC stores in Kerala and continued investment in TWG Tea, new airports, technology, products and customer engagement.

Financial highlights

• Consolidated revenue from operations was ₹1,344.3 crore versus ₹1,110.6 crore in FY18; EBITDA was ₹80.7 crore versus ₹118.0 crore.

• Consolidated EBITDA margin was 6.0%, down from 10.6%; finance costs increased 24% to ₹38.3 crore and depreciation and amortisation rose 24% to ₹82.9 crore.

• Consolidated loss for the year was ₹66.4 crore versus profit of ₹31.1 crore; consolidated EPS was -₹4.55 versus ₹4.33.

• Standalone revenue from operations was ₹1,058.1 crore versus ₹880.6 crore; standalone loss was ₹37.9 crore versus profit of ₹54.7 crore, with EPS of -₹3.57 versus ₹5.15.

Outlook and guidance

• Plans continued investment in high-performing verticals and pan-India expansion, with confidence in maintaining growth as demand improves and eating-out and online ordering trends develop.

• Post year-end, signed a non-binding term sheet to acquire 61 KFC stores in Karnataka, Telangana and Andhra Pradesh, subject to definitive agreements.