Q4 2025 Devyani International Ltd Earnings Call Transcript
Key Points
- Devyani International Ltd (BOM:543330) reported a robust 39.2% year-on-year growth in consolidated revenue, reaching INR4,951 crores, driven by strategic acquisitions and store expansion.
- The company successfully added 257 new stores during FY '25, elevating its total presence to 2,039 stores, reflecting disciplined execution and strong expansion capabilities.
- The acquisition of Sky Gate Hospitality, owners of Biryani By Kilo and other brands, marks entry into a high-potential food category, strengthening the brand portfolio.
- Devyani International Ltd's international business in Thailand showed improved margins and maintained healthy SSSG and ADS numbers.
- The company has introduced new brands like New York Fries, Tealive, and Sanook Kitchen, with the first New York Fries store opened in Mumbai, indicating strategic brand diversification.
- The gross margin for FY '25 decreased to 68.9% from 70.3% in FY '24, impacted by input inflation in cooking oil, coffee beans, and higher deal composition.
- KFC's average daily sales (ADS) dropped significantly, attributed to challenges in key markets like Andhra Pradesh, Telangana, Kerala, and West Bengal.
- Pizza Hut's performance remains a concern with a decline in ADS and a need for strategic discussions with Yum! to turn around the brand.
- The international business, despite operational improvements, is not yet profitable at the PAT level due to aggressive depreciation policies.
- The acquisition of Sky Gate Hospitality involves a currently loss-making business, requiring strategic efforts and additional capital infusion to achieve profitability.
Gentlemen, good day, and welcome to the Devyani International's Earnings Conference Call. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Anoop Poojari from CDR India. Thank you, and over to you, sir.
Thank you. Good afternoon, everyone, and thank you for joining us on Devyani International's Q4 FY '25 Earnings Conference Call. We have with us Mr. Ravi Jaipuria, Non-Executive Chairman of the company; Mr. Raj Gandhi, Non-Executive Director; Mr. Virag Joshi, CEO and Whole Time Director; and Mr. Manish Dawar, CFO and Whole-Time Director of the company.
We will initiate the call with opening remarks from the Chairman, followed by key financial highlights by the CFO. Thereafter, we will have the floor open for a question-and-answer session.
Before we begin, I would like to point out that some statements made in today's call may be forward-looking in nature, and a disclaimer to this effect has been included in the results presentation
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
