Jubilant FoodWorks shine post declaring fourth quarter results

Over the last two months, i.e. since the onset of the nationwide lockdown, restaurants throughout the country are non-operational but is however, functioning only in the home delivery segment thus, affecting its revenue to a large extent.

One such example is Jubilant Foodworks, which has the rights of Domino’s Pizza in India. It has been one of the QSR players, which is operational during lockdown via delivery-only model. To prevent the spread of Coronavirus, it became the early adopter of contact less delivery. For this purpose, they have initiated a campaign, popularly known as ‘zero contact delivery’.

On May 20, 2020 Jubilant Foodworks announced its quarterly results for the quarter ended March 31, 2020. The total income stood at Rs 918.3 crore as per ‘Ind-AS 116’, showing an increase of 4.3 per cent. Meanwhile, the total expenditure stood at Rs 728.4 crore and EBITDA for the quarter stood at Rs 169.5 crore. This has resulted in the EBITDA margin of 18.9 per cent. For the quarter, the company has an exceptional item of Rs 32.3 crore. This included provisions for diminution in the value of investment of Rs 20 crore in a wholly-owned subsidiary and expenses related to COVID-19 pandemic, amounting to Rs 12.3 crore. PAT for the quarter stood at Rs 21 crore, resulting in PAT margin of 2.3 per cent. The company has zero debt. This results in good health of the company, as far as liquidity is concerned.

The number of Domino’s Pizza stores stood at 1,335 at the end of Q4FY20 as compared to 1,127 in Q4FY19. As of Q4FY20, it has a presence in 282 cities/towns as against 273 in Q4FY19.

The stock closed at 1,570.35, up by 3.01 per cent or Rs 45.95 per share. The intraday high is Rs 1,614.80 and intraday low is Rs 1,545.05