Devyani International, the operator of KFC, Pizza Hut etc. in India, announced a significant 156% year-over-year (YoY) increase in profit for the first quarter of FY25 (April-June 2024). The company reported a profit of Rs 30.11 crore, compared to Rs 11.76 crore in the same quarter of the previous fiscal year.
This impressive growth was driven by a 44.3% increase in revenue from operations, which reached Rs 1221.90 crore compared to Rs 846.63 crore in the corresponding quarter of the previous fiscal year. The company attributed this growth to improved average daily sales (ADS) and the addition of new stores.
Devyani International’s EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) also saw a substantial increase of 71% YoY, reaching Rs 215.8 crore.
The company expressed confidence in achieving its target of reaching 2000 stores across its brand portfolio by the end of the current financial year (FY25). This expansion plan reflects Devyani International’s commitment to further strengthen its presence in the Indian market and capitalize on the growing demand for quick-service restaurants (QSRs).
Overall, Devyani International’s Q1 results indicate a strong start to FY25, with robust profit growth and a positive outlook for continued expansion in the Indian QSR sector.
Devyani International’s share price surge today, despite market crashed
Devyani International’s share price performance on August 5, 2024, has been positive overall:
- Open Price: ₹174.10
- High Price: ₹188.57
- Low Price: ₹167.00
- Current Price (as of 3:30 PM IST): 179.00 INR
This indicates a rise of approximately +1.15 (0.65%)compared to the previous day’s closing price. The stock has shown volatility throughout the day, reaching a high of ₹188.57 but also experiencing a dip to ₹167.00.
It’s worth noting that this positive performance comes after the company announced strong Q1 results, with a 156% year-over-year increase in profit. This news likely contributed to investor confidence and the subsequent rise in share price.
Devyani International’s share price surge on August 5, 2024, despite the global market sell-off can be attributed to several factors:
The company recently announced impressive Q1 results with a 156% year-over-year increase in profit. This robust financial performance likely instilled confidence in investors, driving up demand for its shares.
Devyani International operates in the quick-service restaurant (QSR) sector, which has shown resilience during economic downturns. Consumers often turn to affordable food options during challenging times, benefiting QSR companies like Devyani International.
The company’s ambitious expansion plans, with a target of reaching 2000 stores by FY25, also contribute to investor optimism. This growth potential makes the stock attractive even during market volatility.