Jubilant FoodWorks shares tumbled as much as 9.76 per cent in the early trade on Tuesday after the company on Saturday reported 31.09 per cent fall in net profit at Rs 19 crore for the quarter ended June 30, 2016 against Rs 27.57 crore in the corresponding quarter a year ago. Net sales of the company jumped by 6.69 per cent year-on-year to Rs 608.77 crore for the quarter under review against Rs 570.59 crore in the same quarter last fiscal. At 10.02 am, shares of the company were trading 8.71 per cent down at Rs 1077.35. The scrip opened the day at Rs 1,100 and has touched a high and low of Rs 1122.65 and Rs 1065, respectively, in trade so far. Later, the scrip ended 9.51 per cent down at Rs 1067.90.
Operating profit of the company fell by 13.42 per cent year-on-year to Rs 60.82 crore for the quarter ended June 30, 2016 against Rs 70.25 crore in the same quarter last year.
Commenting on Q1FY17 results, Shyam S Bhartia, chairman and Hari S Bhartia, co-chairman, Jubilant FoodWorks in a release said, “A constrained consumption environment had an effect on the overall performance in the Q1FY17. Since then, exciting new product introductions have played an important role in driving sales. We hope in the Q2 we will see improved performance and positive same store growth. We have expanded Domino’s Pizza and Dunkin’ Donuts restaurant network with a focus on getting proper return on investment. We have also continued to make investment in new ERP, digital technology initiatives and commissaries. All these investments will help us in bringing efficiency in supply chain, enhanced customer experience and capture growth through expansion of network.”
In a BSE filing, the company said, “Profit after tax reflects the impact of curbed revenue growth and SSG in the quarter on account of weak consumer sentiment.”
At present, Jubilant FoodWorks operates 1,062 Domino’s Pizza and 73 for Dunkin’ Donuts outlets.
In a separate filing, Jubilant FoodWorks said the board has appointed Sachin Sharma as the chief financial officer and key managerial personnel of the company with immediate effect.