Devyani International Reports Q3 Net Loss Amid Rising Expenses, Revenue Grows 53.5%
Devyani International Ltd (DIL), the largest franchisee of Yum Brands in India, operating KFC, Pizza Hut, and Costa Coffee, reported a consolidated net loss of ₹7.65 crore in the third quarter ended December 2024. The loss was primarily due to higher expenses and increased tax outgo, despite the company achieving robust revenue growth. DIL’s consolidated revenue from operations surged 53.5% year-on-year, reaching ₹1,294.4 crore, compared to ₹843.13 crore in the same period last fiscal. This strong revenue performance was fueled by better same-store sales growth (SSG) and effective cost optimization measures.
The company’s total expenses for the quarter stood at ₹1,294.84 crore, a significant increase from ₹838.06 crore in Q3 FY23. Additionally, tax expenses also rose to ₹16.17 crore, compared to ₹4.61 crore in the previous year’s corresponding quarter. These rising costs impacted DIL’s profitability, causing a reversal from last year’s ₹5.07 crore net profit.
Despite the financial setback, DIL’s non-executive Chairman Ravi Jaipuria remains optimistic. He highlighted that the company’s margin performance improved slightly due to better same-store sales growth and strategic cost optimization efforts. Moreover, DIL successfully expanded its footprint, surpassing the 2,000-store milestone across all brands and geographies, achieving this ahead of its original target. This expansion underscores the company’s commitment to growth in the highly competitive quick-service restaurant (QSR) sector in India.
DIL’s performance in Q3 reflects the broader challenges faced by the QSR industry, including rising operational costs, inflation, and fluctuating consumer spending patterns. However, with its strong brand portfolio and strategic focus on store expansion and cost efficiency, the company remains well-positioned for long-term growth. Moving forward, DIL aims to enhance operational efficiency, drive customer engagement, and expand its market presence, ensuring sustained profitability in the evolving Indian foodservice landscape.
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Keywords: Devyani International Q3 results, Yum Brands India franchisee, KFC India revenue, Pizza Hut India sales, quick-service restaurant growth, food industry trends India, fast food market share, same-store sales growth, QSR profitability India, restaurant expansion strategy.