Devyani International's Growth Momentum Continues as it adds 54 New Stores in Q1 FY2025

Devyani International Limited (DIL), one of the largest Quick Service Restaurant (QSR) operators in India, has announced its financial results for the quarter ended June 30, 2024. DIL added 54 net new stores with an aim to reach the consumers in its under-penetrated markets and offering an enhanced customer experience and service. With this addition, DlL’s total store count moves to 1,836 stores as of June 30, 2024. Devyani International, operator of Pizza Hut, KFC and Costa Coffee, reported a profit of Rs 224.30 crore for the June quarter.

DIL is on track to meet the target of 2000 stores across its brand portfolio within the current financial year. Operating Revenues for Q1 2025 stood at Rs. 12.2 billion, growing at a healthy QoQ rate of 16.7%. Consolidated EBITDA for the quarter closed at Rs. 2.2 billion, with margins at 18.3% - an improvement of 1.7% compared to the previous quarter. DIL results display resilience, and the Company remains committed to expanding its store presence, in line with the earlier communicated guidance. DIL continues to focus on offering value-driven options to consumers to navigate market dynamics and drive growth.

The Company introduced innovative marketing campaigns and promotional deals across its range of brands, enabling it to capitalize on seasonal trends. Commenting on the performance for Q1 FY2025  Ravi Jaipuria, Non-Executive Chairman, Devyani International Limited said, “We witnessed an improved performance for DIL in Q1, driven by seasonality and cost leverage from better ADS across our businesses. Our Thailand business also demonstrates growth with new store openings and a customer delight strategy. We remain committed to expanding our store footprint and making our brands more accessible to our consumers. As announced earlier, we are on track to achieve a total store count of 2,000 stores within the current financial year. We are also focused on enhancing various institutional businesses, including food courts and airport presence. We are delighted with the positive progress in Q1 and shall continue to be relentless in our plans for the upcoming quarters.”

 Key Developments

Continued momentum on store expansion:  On track to achieve a store count of 2,000 stores in FY25

• DIL opened 54 net new stores, taking the total store count to 1,836
• Projected to open 250 – 275 new stores in FY25
• Pursuing a dynamic store expansion plan across all brands

Q1 Revenues were at Rs. 12.2 billion

• Revenue grew by 16.7% on QoQ basis
• Performance supported by improved ADS and store additions

 Q1 EBITDA was at Rs. 2.2 billion i.e. 18.3%, vs 16.6% in the previous quarter