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Devyani International Ltd, a quick service restaurant (QSR) operator, on Friday reported a consolidated net loss of Rs 1.59 crore for the first quarter that ended on June 2023 on account of currency devaluation in the Nigerian market. Shares of Devyani International Ltd on Thursday settled at Rs 188.70 on BSE, down 2.83% from the previous close.

The company, which is the largest franchisee of Yum Brands in India for Pizza Hut and KFC, and Costa Coffee — a coffee chain brand owned by Coca-Cola — had reported a net profit of Rs 74.76 crore in the April-June quarter a year ago. However, DIL’s revenue from operations during the quarter was up 20.13% to Rs 846.63 crore as against Rs 704.72 crore in the year-ago period, according to an exchange filing by Devyani International Ltd (DIL).

“The consolidated PBT got impacted because of significant currency devaluation in Nigeria. On a normalized basis the PBT stood at Rs. 60.3 crore for the quarter vs Rs 41.2 crore in the previous quarter,” said an earning statement from DIL.

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Besides, gross margin improved by 120 bps to 70.8% as a result of some price increase during the quarter and stabilization of input prices, it added. Total expenses were at Rs 79,316 crore, up 24.59% in the first quarter of FY 2023-24. The total income of DIL in the June quarter was at Rs 853.45 crore, up 19.57%. In the April-June quarter, DIL opened 47 net new stores, taking the total store count to 1,290 across India, Nigeria and Nepal.

“As of June 30, 2023, DIL operates 564 KFC stores, 525 Pizza Hut stores, and 123 Costa Coffee stores, with a total of 1,290 system stores across all geographies,” it said.

Commenting on the results Non-Executive Chairman Ravi Jaipuria said: “We are going to be opening 275 to 300 stores during the current fiscal year, as we continue working towards our ambitious target of reaching 2,000 stores by 2026.” Besides, DIL is also expanding its own south Indian cuisine QSR brand Vaango and the company is “bullish” on this brand given the popularity of South Indian cuisine in the entire country DIL “has also opened 52 stores in Vaango so far and Vaango is expected to be a Rs 100 crore brand by the end of the current financial year,” Jaipuria added.