Jubilant Food
The performance of this ‘Domino’s Pizza’ company was pretty disappointing yet, the stock yesterday closed strongly in the green. Call it FII loyalty or sheer investor fancy, the price rise and the performance had no co-relation.
The company ended Q4FY14 with a 23% (YoY) drop in net profit at rs.25 crore while total income rose 18% at Rs.434 crore. Higher costs dented the margins. Total expenses in Q4 rose on account of 29% hike in employees cost and this was mainly on account of wage hikes given to team members in certain States and network expansion, which has resulted in growth of personnel expenses during the quarter. Contributing to rise in manufacturing and other expenses were factors like hiked promotions and advertising, besides growth initiatives including new products and new restaurants. The development of Dunkin"Ÿ Donuts network also contributed to the acceleration in costs. Total number of employees as on 31 March 2014 stood at 24,969 up from 19,734 on 31 March 2013. EBITDA was down 8.5% while EBITDA margin fell 390 bps at 12.8%.
The company ended FY14, with a 23% rise in consolidated total income at Rs.1736 crore while net profit for the fiscal was down 10% at Rs.118 crore. The company opened 47 new restaurants in Q4 and 150 in FY14. And Dunkin Donuts is currently through 29 restaurants. For FY15, the company hopes to add another 150 restaurants for Domino’s and 25 for Dunkin’. This company too, like typical of MNCs, remains debt free. Promoters stake as at 31st March 2014 stood at 49.58% and institutions held almost equivalent at 46.69% of which only 0.07% stake was held by Domestic Institutions, rest all by FIIs.