Jubilant Foodworks shares tank 6% after Q2 results

Shares of Jubilant Foodworks, the parent company of restaurant chain Domino’s India and Dunkin Donuts, plunged as much as 6.28% in early trade on Thursday to hit an intraday low of ₹495.20 apiece on the BSE as investors weighed weak Q2 numbers. The company reported 26% year-on-year fall in consolidated net profit at ₹97.2 crore in Q2 FY24, as against ₹131.5 crore in the same period last year.

The scrip opened at ₹511, down by 3.29%, as against the previous closing price of ₹528.40. At 10:18 am, the share price of Jubilant Foodworks  was trading 5.88% lower at ₹497.35. This was in line with the broader BSE Sensex, which was trading 658.11 points or 1.03% lower at 63,391.

At present, the share price of the company was trading 21.09% lower than the 52-week high of ₹627.75, which the company touched on November 2, last year. The share price of the company was trading 20.3% higher than the 52-week low of ₹412.20, which the company touched on March 20 this year. The company’s market capitalisation stood at ₹32,734.92 crore with more than 2.11 shares exchanging hands on the BSE as against the two-week average of 0.48 lakh shares.

During the quarter under review, the company’s revenue from operations stood at ₹1,368.63 crore, surging by 5.51% as against ₹1,301.48 crore in the same period last year.

"The growth continues to be order led with elevated level of consumer engagement and the decline in tickets is also now arrested. Also, the second consecutive quarter of sequential improvement in ADS of mature stores and gross margins are early indicators of structural improvement in the health of our business. Every single action being taken by us is not only helping us manage the short-term challenge but will also ensure a very solid foundation for the long-term growth of our business," says Sameer Khetrapal, CEO & MD, Jubilant FoodWorks Ltd.

The company’s EBITDA (earnings before interest, tax, depreciation and amortization) stood at ₹280.7 crore during the quarter under review witnessing a decline of 10.2% as against ₹312.5 crore in the same period last year. The company’s EBITDA margin stood at 20.9% in the September quarter as against 24.3% in the same period last year.

During the quarter, the company opened 60 new stores in India, resulting in a network of 1,949 stores across all brands. With the addition of 50 new stores and entry in three new cities, Domino’s India now has 1,888 stores across 397 cities in India. 

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