The company’s sales declined to Rs 332.8 crore in Q4FY20 from Rs 333.64 crore in Q4FY19. Total expenses increased to Rs 300 crore during the quarter from Rs 293 crore in the previous year.
Westlife Development, which manages quick-service restaurant (QSR) chain McDonald’s, posted a net loss of Rs 17.5 crore on a consolidated basis in the three months to March 2020, against a profit of Rs 1.28 crore in the same period a year ago, as the Coronavirus pandemic impacted business operations. The loss incurred includes exceptional items (unused inventory like raw materials) of Rs 16.6 crore due to Covid-19.
The company’s sales declined to Rs 332.8 crore in Q4FY20 from Rs 333.64 crore in Q4FY19. Total expenses increased to Rs 300 crore during the quarter from Rs 293 crore in the previous year. The stock price of Westlife Development on Friday ended at Rs 297 apiece on the BSE, down 0.42%.
“As a large part of our restaurant business could not be made operational due to lockdown, our revenues have been adversely impacted. Nevertheless, the business has continued to incur committed expenditures especially with respect to our employees and other expenditures not directly linked to revenues — this has significantly impacted profitability during this lockdown period,” the company said in a statement.
The firm said it is estimating “lower demands” in the short term. The focus would be prioritising cash conservation, cost reductions with emphasis on maintaining adequate liquidity, and minimal borrowings. The company claims to have strong cash reserves to the tune of Rs 156 crore of investments in various liquid mutual funds and other instruments “that can be converted to cash at short notice”.