Jubilant Foods Q3 PAT up 21.6% to Rs 124 cr on doubling of deferred taxes
Fast food major Jubilant Foodworks (JFL), which runs the Domino’s Pizza franchise in the country, reported a 21.6 percent jump in its net profit for the October-December quarter. Its profit surged to Rs 124 crore from Rs 102 crore as the firm nearly doubled its deferred tax amount to Rs 107 crore from Rs 52 crore in the corresponding period previous year.
However, the company recorded a dip in its operating revenue, which inched down to Rs 1,069 crore from Rs 1,071 crore in October-December, 2019. Massive closure of outlets in the nine months starting April and temporary disruptions on restaurant operations due to continuing impact of the Covid pandemic affected its overall business.
During the quarter, its same-store growth declined by 1.7 per cent year-on-year, compared to a 5.9 per cent growth in the corresponding quarter.
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“The Covid-19 situation across countries affected normal dine-in operations of restaurants, resulting in lower sales”, it said in the regulatory filings. Further, Jubilant informed its investors that with the Covid pandemic continuing to disrupt businesses, it has made detailed assessment of the liquidity position for the next one year and “recoverability and carrying values of all its assets and liabilities”.
The impact of the pandemic is evident from its store readjustment figures. Between April and December, Jubilant has permanently shut down 105 Domino’s outlets – much higher than the 84 new outlets it has opened. For Dunkin Donuts, 10 outlets have been shut, while 3 launched in nine months. Resultantly, store count under these two brands has come down to 1,314 at the end of December from 1,335 on 1 April.
“The resilience of our business was tested like never before over the last nine months. We are now shifting gears and preparing for an exciting period of growth ahead”, said Prateek Pota, CEO, Jubilant Foodworks.
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