The Indian food industry has been booming in recent times due to an increase in the number of popular fast food chain restaurants such as Domino’s, McDonald’s, Pizza Hut, and others that are located in Indian Tier 1 and Tier 2 cities. Which operates on a franchise model, This industry is evolving drastically by adopting technology and cultural shifts as a result, the quick-service restaurant (QSR) business has grown significantly.
As per Credit rating agency ICRA, India’s Domestic quick-service restaurant business is projected to grow by 20-25% in FY2024 due to increased demand and penetration across the country, with revenue likely to increase by 30-35 percent year on year in FY23.
There are just a few major players in the QSR business that achieve impeccable profits and growth in this enormous untapped Indian market.
Here are three such fast food firms that had a net profit increase of 11200% year on year.
Devyani International Ltd:
Devyani International Limited is the largest franchisee for Yum Brands (KFC and Pizza Hut) in India, as well as the exclusive franchisee for the Costa Coffee brand outlets.
The company has a market capitalization of Rs 23,030 crore and is under the Mid-cap category. Shares closed at Rs 191.05 apiece on June 21, down 0.98 percent from the previous close price.
Revenue increased by 44 percent year on year, from Rs 1,853 crore in FY 21-22 to Rs 2,668 crore in FY 22-23. Net profit has grown by 61 percent from Rs 153 crore to Rs 246 crore.
The stock has gained by 32.50 percent in the last year, from Rs 143.40 to the current price.
The profitability ratios grew in FY23, with ROE at 21.38 percent and ROCE at 14.02 percent. The operating margin increased to 12.65 percent, while the net profit margin was 9.22 percent.
Westlife Foodworld Ltd:
Westlife Foodworld Ltd is India’s fastest-growing quick-service restaurant operator, establishing and operating McDonald’s outlets across the country. The company operates 319 McDonald’s restaurants and 223 McCafe outlets.
With a market capitalization of Rs 13,262 crore, the company belongs to the small-cap category. On June 21, the stock closed at Rs 850.50 a share, a 2.15 percent decrease from the previous close price.
Revenue climbed by 45 percent year on year, rising from Rs 1,576 crore in FY 21-22 to Rs 2,278 crore in FY 22-23.Net profit has improved by 11,200 percent from a deficit of Rs 1 crore to a profit of Rs 111 crore.
The stock has gained by 87 percent in the last year, from Rs 455.30 to the current price.
In FY23, the profitability ratios increased substantially, with ROE at 19.71 percent and ROCE at 39.58 percent. The operational margin climbed to 10.63 percent, while the net profit margin was at 4.89 percent.
Sapphire Foods India Ltd:
Sapphire Foods India is the largest franchisees network in India and Sri Lanka, with over 400 KFC, Pizza Hut, and Taco Bell locations in India, Sri Lanka, and the Maldives.
The company belongs to the small-cap category with a market capitalization of Rs 9,032 crore. Shares closed at Rs 1,420 apiece on June 21, up 2.43 percent from the previous close price.
Revenue climbed by 40 percent year on year, rising from Rs 1,398 crore in FY 21-22 to Rs 1,962 crore in FY 22-23. From Rs 24 crore to Rs 226 crore, net profit has increased by 841 percent.
The stock has gained by 45.33 percent in the last year, from Rs 977.05 to the current price.
In FY23, the profitability ratios increased, with ROE at 17.60 percent and ROCE at 8.85 percent. The operational margin rose to 9.18 percent, while the net profit margin improved to 11.51 percent.
Written by Omkar C
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