Devyani (DEVYANI) Q4 21/22 earnings summary

Executive summary

• FY22 was a record year despite COVID-19 disruptions and inflation: revenue rose 84% YoY to ₹20,840 million, with PAT of ₹1,551 million versus a ₹813 million loss in FY21.

• Added 246 net new stores, taking the network to 938 across India, Nepal and Nigeria; the stated annual expansion objective is 200–250 stores.

Financial highlights

• Consolidated revenue from operations was ₹20,840.10 million versus ₹11,348.38 million in FY21; gross profit reached ₹14,842 million, up 88% YoY.

• Consolidated PAT from continuing operations was ₹1,551.15 million versus a ₹813.24 million loss; diluted EPS from continuing operations was ₹1.32 versus a ₹0.67 loss.

• Consolidated EBITDA was ₹4,760 million, up 103% YoY; pre-Ind AS EBITDA was ₹2,995 million, with a 14.4% margin versus 8.1% in FY21.

• Net cash generated from operating activities was ₹4,505.89 million versus ₹2,395.58 million in FY21.

Outlook and guidance

• Targeting 200–250 new stores annually, with expansion across existing clusters and emerging cities; non-metro locations represented 51% of core-brand stores at year-end versus 48% a year earlier.

• Plans emphasize delivery-focused KFC and Pizza Hut outlets, stronger aggregator partnerships, technology investment and improved unit-level economics.

• Pricing adjustments were made to mitigate rising input costs; management remained optimistic about medium- and long-term prospects, citing consumption, demographics and internet penetration.