Shares of Jubilant FoodWorksBSE -7.59 % plunged 13 per cent in Tuesday’s trade after the company reported a 75.88 per cent drop in standalone net profit at Rs 6.71 crore for the fourth quarter.
The operator of Dominos and Dunkin Donuts outlets had posted a net profit of Rs 27.83 crore in the corresponding quarter of
last year.
The company said its total income for the quarter fell to Rs 616.35 crore from Rs 620.97 crore in the same quarter last
year.
Following the numbers, the scrip fell 12.95 per cent to hit a low of Rs 817.60 on BSE.
“Jubilant FoodWorks’ Q4FY17 revenue and EBITDA came below our estimates and we expect the stock to be under pressure near term. Key negative was SSG dip due to demonetisation. The company’s focus on profitability led to shut down of 13 Dunkin Donuts and 8 Dominos stores in Q4FY17. Further, FY18 store opening guidance is sharply lower 40-50 Dominos versus past 3 years’ average of 135 stores,” EdelweissBSE -2.30 % Securities said in a note.
During the quarter, the company also reported exceptional cost of Rs 12.17 crore related to one time separation cost incurred as part of manpower rationalisation exercise carried out by the company.
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