Shares of Devyani International, the franchisee owner of Pizza Hut and KFC, are likely to remain in focus on November 12 after the company reported a net loss for the quarter ending September 30, 2024.
The company posted a consolidated net loss of Rs 4.92 crore in Q2FY25, compared to a net profit of Rs 35.82 crore in the same quarter last year.
Despite the loss, the QSR operator reported a strong growth in revenue from operations, which rose 49.2 percent year-on-year to Rs 1,222.15 crore, up from Rs 819.47 crore in Q2FY24.
The company’s Indian business continued to face challenges, with both KFC and Pizza Hut experiencing a decline in same-store sales growth (SSSG), which impacted profit margins. However, Devyani International is diversifying into new categories, such as bubble tea, French fries, and Thai food, to drive future growth, although the financial impact of these initiatives remains limited in the short term.
Despite the ongoing challenges, the company is optimistic about a recovery in the second half of FY25, driven by menu innovations, marketing strategies, and the upcoming festive season.
Shares of Devyani International have fallen by around 3.6 percent over the past 12 months, underperforming the Nifty 50, which gained 25 percent during the same period.
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