Profit at Pizza Hut and KFC operator Devyani International fell by 21.2% in the fourth quarter of FY23.
Quick service restaurants chain operator Devyani International Limited (DIL), on Wednesday, has reported 21.2 per cent drop in consolidated net profit at Rs 59.8 crore for the fourth quarter (Q4) ended on March 31, 2023. It had posted a consolidated net profit of Rs 75.9 crore in the corresponding quarter of financial year 2021-22, according to a regulatory filing.
DIL is the largest franchisee of Yum Brands in India which operates brands such as KFC, Pizza Hut and Taco Bell.
However, the company’s total income increased 29.14 per cent to Rs 7,65.99 crore in Q4 FY23 as against Rs 5,93.13 crore in the similar period of the previous fiscal, as per the BSE filing.
Devyani’s total expenses also rose to Rs 7,24.76 crore in Q4 FY23 as compared to Rs 5,47.99 crore in the corresponding period of the previous fiscal.
As per the exchange filing, its total income for the fiscal year 2023, has jumped 44.29 per cent year-on-year (YoY) at Rs 3,030.30 crore as compared to Rs 2,100.13 crore in the previous fiscal FY22.
Ravi Jaipuria, non-executive chairman at Devyani International said, “In FY23, DIL demonstrated strong growth momentum and we have crossed some very significant milestones. Our consolidated revenues have reached Rs 3,000 crore.”
The company now operates 1,243 stores across wide portfolio of countries and brands, more than doubling its store count over the last three years.
During the fiscal year 2023, both KFC and Pizza Hut had crossed store milestones of 500 stores each. Costa Coffee has also crossed 100 stores as of March 31, 2023.
Jaipuria said, “We continue to actively pursue new trade areas in metro cities and upcoming locations. This will help us take our brands closer to our customers and give them better experience, thus solidifying our presence in the domestic markets.
Sharing on the future growth, he said that the confidence in DIL’s brands and the Indian market remains strong.
“We are seeing initial signs of inflation stabilizing. This gives us hope for a rebound in consumer spending in second half of the coming fiscal,” Jaipuria added.