Devyani (DEVYANI) Q4 19/20 earnings summary

Executive summary

• FY20 consolidated revenue from operations rose to ₹15,651.00m from ₹13,565.97m; consolidated loss widened to ₹1,214.18m from ₹664.30m.

• Expanded the footprint through 69 openings, 49 closures of loss-making outlets and nine KFC store acquisitions; 37 further KFC acquisitions were completed after year-end.

• COVID-19 lockdowns temporarily affected restaurant and commissary operations; management emphasized delivery, takeaway, hygiene and contactless service as recovery priorities.

Financial highlights

• Consolidated revenue from operations was ₹15,651.00m versus ₹13,565.97m; total income was ₹15,840.52m versus ₹13,654.00m.

• Consolidated loss before exceptional items and tax was ₹1,541.55m versus ₹652.99m; loss for the year was ₹1,214.18m versus ₹664.30m.

• Consolidated exceptional item was a ₹345.78m gain from terminating a significant lease; consolidated finance costs rose to ₹1,687.91m from ₹382.77m.

• FY20 consolidated operating cash flow was ₹3,007.16m versus ₹760.97m; year-end cash and cash equivalents were ₹132.26m versus ₹265.72m.

• DIL and Indian subsidiaries’ financial review, after Ind AS 116: revenue ₹1,375.8cr versus ₹1,344.3cr; EBITDA ₹255.3cr versus ₹80.7cr and margin 18.6% versus 6.0%.

Outlook and guidance

• Management expected stronger recovery in coming months as takeaway and delivery orders improved, with continued investment in high-performing verticals and expansion into newer markets.

• Delivery and takeaway were expected to lead revenue; plans included greater focus on technology, hygiene, safety, contactless delivery and digital payments.

• Management cited confidence in future growth, supported by domestic consumption, eating-out and ordering-in trends, and pan-India restaurant expansion.