Jubilant FoodWorks to invest Rs 250 crore on capex in fiscal year 2014

Written by PTI | New Delhi, Aug 2 | Updated: Aug 2 2013, 23:14pm hrs
Jubliant FoodWorksGrowth is hot for Jubliant FoodWorks (express photo)
Jubilant FoodWorks said today that it is planning to invest Rs 250 crore in the current fiscal term on capital expansion in order to maintain growth.

The company, which reported over 5 per cent increase in net profit for the first quarter of the fiscal, will fund expansion from internal accruals.

The company reported 5.13 per cent increase in its standalone net profit at Rs 34 crore for the first quarter ended June 30, 2013.

The company had reported a net profit of Rs 32.34 crore during the same quarter a year ago.

Jubilant FoodWorks' net sales during the quarter under review were at Rs 396.42 crore, up 26.07 per cent, compared with Rs 314.44 crore in the corresponding period last year.

"The growth story is absolutely intact, and the growth will be driven by the investments we make. This year we will invest Rs 250 crore for capital expansion," Jubilant FoodWorks CEO Ajay Kaul said.

"Topline performance driven growth in Domino's Pizza was on account of expansion in the network of restaurants, where coverage has improved both within existing cities and by way of entering new cities", the company said.

Profits remained at stable levels owing to consumer spends having moderated, increase income tax surcharge and depreciation expense due to rapid expansion of restaurant network, the company said in a statement.

Overall expenses during the quarter were at Rs 347.72 crore, an increase of 29.31 percent as against Rs 268.89 crore in the same quarter last year.