Most global brokerage firms maintained their rating on Jubilant FoodWorks after March quarter results, but CLSA slashed its target price on earnings cut for FY20-21.
Jubilant FoodWorks has reported 8.6 percent jump in its Q4FY19 net profit at Rs 73.9 crore. The company had reported a net profit of Rs 68 crore last year same quarter.
The company said its books has also suffered a one-time loss of Rs 7.9 crore because of closed stores in Sri Lanka.
Operational revenue of the company rose 11 percent at Rs 865 crore against Rs 780 crore year ago. The company said Domino’s same-store-sales growth (SSG) was at 6 percent.
Earnings before interest, tax, depreciation, and amortization (EBITDA) was up 15 percent at Rs 147.6 crore against Rs 127.7 crore, while margin was at 17.1 percent versus 16.4 percent, YoY.
Analysts at the top brokerage firms are of the view that earnings could see a dent in FY20-21, and even the SSG was also below estimates. Hence, investors holding Jubilant should continue to hold as the long-term story still remain intact.
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