Jubilant Foodworks will report its June-quarter earnings on Wednesday and analysts expect the food service company to report double-digit profit and revenue growth.
- The street is working with revenue growth of around 11 percent at Rs 950 crore.
- The EBITDA likely to grow slightly higher at 13.5 percent, that means the margin expansion on the cards to the tune of 40-50 basis points (bps).
- The analysts are also looking at a net profit growth of around 16-16.5 percent, Rs 87 crore is the number that one should be watching out for.
- The same-store sales growth (SSSG), which tell us how many more pizzas were sold from the same stores, is seen around 6-8 percent on a high base of 25.9 percent.
- The revenue growth moderates on account of a high base but it stays supported because of the two events— Cricket World Cup 2019 (CWC) as well as IPL.
- Price rationalisation that the company has done to their Everyday Value pizzas means the gross margins expand by about 80-100 bps.
- The company has initiated a few new concepts like Hong’s Kitchen, which is a Chinese restaurant, and may weigh in on the sharp EBITDA margin expansion which is why the analysts are working with just around 30-40 bps.