KFC operator Devyani International on Wednesday released its fiscal fourth quarter earnings with a profit drop of 87.74 per cent on-year to Rs 3.69 crore. It has recorded profit at Rs 30.11 crore during the first quarter of FY25. The company reported revenue from operations at Rs 1,356.97 crore, posting a growth of 11.05 per cent as against Rs 1221.90 crore during the corresponding quarter of previous financial year.
It is worth noting here that during the previous quarter (Q4FY25), Devyani International had posted a loss of Rs 14.74 crore which was widened from Rs 7.47 crore recorded during the corresponding quarter of FY24.
The company EBITDA was down 4.6 per cent at Rs 206 crore with EBITDA margins at 15.1 per cent. The dip in margins was due to deleverage from lower ADS YoY and investments in marketing and promotions in the quarter.
Ravi Jaipuria, Non-Executive Chairman, Devyani International Limited, said, “Our financial performance has been healthy. On a consolidated basis, Q1 revenues reached Rs 1,357 crore– a 11.1 per cent YoY growth. This growth was driven by healthy growth from KFC, Costa and the Food Court business in India and supported by 11.2 per cent YoY growth in the international business.”
Expansion and acquisition
Devyani International expanded its footprint to 2,145 stores with 106 new stores added during the quarter. This includes 105 stores of Sky Gate Hospitality.
The company concluded the acquisition of Sky Gate Hospitality – which runs “Biryani by Kilo” and “Goila Butter Chicken” brands with an additional approximately Rs 103 crore investment. This increased its stake in Sky Gate Hospitality to 86.13 per cent subsequently.
Ravi Jaipuria said, “This gives us access to market leading brands to expand our presence in the Biryani and Indian cuisine segment – one of the largest food categories in the country. Sky Gate Hospitality has 105 outlets at present, and we are confident that these brands will be one of the key contributors to our expansion plans going forward.”
Q1 performance across business verticals
o KFC India: Rs 612.60 crore, up 10.5% YoY
o Pizza Hut India: Rs 187.30 crore, up 3% YoY
o International business: Rs 433.20 crore, up 11.2% YoY
Devyani International is the largest franchisee of Yum Brands in India and is among the largest operators of chain quick service restaurants (QSR) in India. Yum! Brands Inc. operates brands such as KFC, Pizza Hut and Taco Bell brands.