Devyani International Posts Wider Loss In March Quarter Despite Strong Revenue

Devyani International reported a deeper consolidated net loss of ₹147.38 million for the March quarter, widening from a loss of ₹74.65 million a year ago and ₹4.92 million in the previous quarter. The bottom line was significantly below analyst expectations of a ₹87.86 million loss.

The food services operator saw its revenue from operations rise 15.8% on year to ₹12.13 billion in the March quarter, though it slipped 6.3% from the December quarter. The company’s total expenditure jumped to ₹12.48 billion from ₹10.99 billion a year ago, driven by higher finance costs, which rose to ₹695.33 million from ₹566.68 million.

Other income also fell to ₹131.85 million from ₹143.39 million a year ago, adding to the pressure on profits. However, a tax write-back of ₹55.85 million in the quarter offered some relief, compared to a tax outgo of ₹109.64 million in the same period last year.

For the full year ended March, Devyani International reported a net profit of ₹91.49 million, down 80.6% on year, even as revenue from operations surged 39.2% to ₹49.51 billion.