Can takeaway facility of JUBLFOOD compensate COVID-19 impact?

Jubilant Foodworks is the market leader in the pizza segment with a network of 1,325 Domino’s Pizza restaurants across 282 cities in India.

During this COVID-19 pandemic, the company has suspended its dine-in facilities across all Domino's Pizza restaurants. To cope up with this revenue loss, the company has started promoting takeaway and delivery channels.

The company has started ‘zero contact delivery’ under which, the customers will receive their order without coming into contact with a delivery staff. This step would cover the loss up to some extent that would have been occurred on stores closure in Coronavirus outbreak. However, the company has to bear the impact of this pandemic as it is going to hit its top-line growth.

Looking at the financials of the recently concluded quarter-Q3FY20, the consolidated revenue came in at Rs 1,071.36 crore as against Rs 937.31 crore in the corresponding quarter last year, registering 14.3 per cent YoY increase. EBITDA for the quarter grew by 51.4 per cent YoY to Rs 254.44 crore as against Rs 168.09 crore in the corresponding quarter last year, with a corresponding margin expansion of 582 bps. EBITDA margin for the quarter stood at 23.7 per cent. PAT for the quarter came in at Rs 101.8 crore as against Rs 92.92 crore in the corresponding quarter last year, with a YoY increase of 9.6 per cent. Looking at nine-month numbers i.e. for 9MFY20, the revenue jumped by 12 per cent YoY to Rs 3,018.52 crore while, EBITDA grew by 55 per cent YoY to Rs 706.48 crore. Further, the company reported a net profit of Rs 246.26 crore, up by two per cent, YoY.