Tag: Devyani International

Devyani International Block Deal Deal | 4.4% equity worth ₹871 crore changes hands

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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As many as 5.3 crore shares, or 4.4% equity of Devyani International worth ₹871 crore changed hands in block deal window at ₹164.10 per share on Wednesday, February 21, 2024.

A day prior, CNBC-TV18 had reported, citing sources, that Yum Restaurant India Private Ltd was likely to divest its entire stake (4.4%) in Devyani International Ltd via block deals.

The floor price for this transaction was set at ₹153.5 per share, which represents a 7.45% discount to the current market price (CMP) at the Bombay Stock Exchange (BSE), the sources had said, adding that the sale was likely to be valued at approximately ₹814.8 crore. Citigroup Global Markets India is the sole book running lead manager (BRLM), the people in hte know told CNBC-TV18 on Tuesday, February 20.

Devyani International reported an 87% fall in quarterly profit amid a challenging macroeconomic landscape and subdued consumer sentiment. The KFC and Pizza Hut operator’s consolidated net profit fell to ₹9.6 crore for the third quarter ended December 31, from ₹71.6 crore a year ago.

However, Devyani International’s revenue from operations rose 6% year-on-year to ₹843 crore, compared to ₹791 crore in the corresponding period of last year. EBITDA was down 17% at ₹146 crore, compared to ₹175 crore a year ago. The EBITDA margins stood at 17.3%.

.Devyani International shares ended 0.61% higher at ₹166.2 apiece on Tuesday, February 20. The stock has fallen 14.7% in the last six months, but is up 8.66% in the past year.

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Block deal Alert | Yum Restaurant may sell entire stake in Devyani International for ₹815 crore

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Yum Restaurant India Private Ltd is likely to divest its entire stake (4.4%) in Devyani International Ltd via block deals, sources privy to the developments told CNBC-TV18.

The floor price for this transaction is set at ₹153.5 per share, which represents a 7.45% discount to the current market price (CMP) at the Bombay Stock Exchange (BSE), sources in the know told CNBC-TV18.

This sale is likely to be valued at approximately ₹814.8 crore, the sources added. Citigroup Global Markets India is the sole book running lead manager (BRLM).

Devyani International reported an 87% fall in quarterly profit amid a challenging macroeconomic landscape and subdued consumer sentiment. The KFC and Pizza Hut operator’s consolidated net profit fell to ₹9.6 crore for the third quarter ended December 31, from ₹71.6 crore a year ago.

However, Devyani International’s revenue from operations rose 6% year-on-year to ₹843 crore, compared to ₹791 crore in the corresponding period of last year. EBITDA was down 17% at ₹146 crore, compared to ₹175 crore a year ago. The EBITDA margins stood at 17.3%.

Shares of Devyani International Ltd ended at ₹165.85, up by ₹0.60, or 0.36%, on the BSE.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Devyani International Q3 Results: India KFC operator posts 87% drop in net profit

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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India’s Devyani International reported a 87% fall in quarterly profit on Friday (January 2) amid a challenging macroeconomic landscape and subdued consumer sentiment. The KFC and Pizza Hut operator’s consolidated net profit fell to ₹9.6 crore for the third quarter ended December 31, from ₹71.6 crore a year ago.

However, Devyani International’s revenue from operations rose 6% year-on-year to ₹843 crore, compared to ₹791 crore in the corresponding period of last year.

EBITDA was down 17% at ₹146 crore, compared to ₹175 crore a year ago. The EBITDA margins stood at 17.3%.

“We have witnessed subdued consumer sentiments. However, we believe that the weak consumer sentiment and depressed consumer spending is temporary and short-lived, and we are optimistic about witnessing a recovery over the next few quarters. Amid these challenges, our operating and financial performance has remained stable, and we continue to invest in the business for long-term growth,” said Ravi Jaipuria, Non-Executive Chairman at Devyani International.

Jaipuria also said the company has successfully completed the acquisition of Restaurants Development Co Ltd (RD) one of the franchisee partners of KFC in Thailand. “This has led to the addition of 283 KFC stores as on December 31, (274 stores as on September 30) to our overall store portfolio,” he said.

Devyani International is positioned to meet its goal of achieving 2,000 stores by end of 2024, ahead of the initially projected target of 2026.

Shares of Devyani were trading 1.91% at ₹174.45 at 12:45 pm today.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Ravi Jaipuria of Varun Beverages is now richer than India’s richest banker: CNBC-TV18 Edge

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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With shares of Varun Beverages gaining 18x from its IPO back in 2016, Ravi Kant Jaipuria – the founder and chairman of RJ Corp – has seen his net worth surge by $6 billion in 2023. In the process, India’s “Cola King” has overtaken the country’s richest banker – Uday Kotak, in terms of net worth.

Jaipuria, the promoter of bottling and beverage company Varun Beverages and QSR player Devyani International, companies named after his children, ranks 14th in the Bloomberg Billionaires Index, with a $14.5 billion net worth. 85% or $12.8 billion of that comes solely from Varun Beverages.

In comparison, the net worth of Uday Kotak, founder & former CEO of Kotak Mahindra Bank, increased by $414 million since January to $14.1 billion.

Source: Bloomberg

On Tuesday, Varun Beverages announced its entry into the South African market through the acquisition of a 100% stake in Bevco for ₹1,320 crore. BevCo is PepsiCo’s bottling partner in South Africa and also has franchise rights for the Lesotho and Eswatini regions, along with distribution rights for Namibia and Botswana.

The street cheered the acquisition with the stock having gained 17% over the last four trading sessions and has also hit a record high. In an interaction with CNBC-TV18 on Thursday, Jaipuria said that the latest acquisition will bring large volume addition to the company’s portfolio along with an expansion in margins.

“South Africa business should add ₹200-250 crore to the company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA),” Jaipuria said.

Additionally, the Gurugram-based company also signed a memorandum of understanding with the Jharkhand government on Tuesday to set up a manufacturing plant in the state by spending ₹450 crore.

While shares of Varun Beverages have surged as much as 95% this year, those of Kotak Mahindra Bank has returned less than 2%. The latter has also underperformed the banking stocks gauge – the Nifty Bank, which is up 11.3% so far in 2023.

Shares of Devyani International, another entity promoted by Jaipuria have gained close to 6% this year, after 10% returns in 2022. The company recently announced its foray into the Thailand QSR market with the acquisition of 274 KFC outlets there.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Devyani International to acquire 274 KFC restaurants in Thailand push

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Devyani International Ltd, a quick service restaurant (QSR) operator, on Monday (December 18) said it’s planning to acquire 274 KFC restaurants in Thailand through its Dubai-based subsidiary Devyani International DMCC.

The acquisition is facilitated through a share purchase agreement with Restaurants Development Co Ltd, the current operator of the extensive KFC restaurant chain spread across Thailand, Devyani International said in a regulatory filing.

With more than 4,500 employees under its wing, Restaurants Development has become a key player in the Thai QSR landscape, boasting 274 KFC outlets as of September 2023.

The deal, expected to conclude on or before March 31, 2024, is contingent upon customary regulatory approvals, laying the groundwork for Devyani International to expand its footprint in the lucrative Thai market.

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This strategic venture into Thailand is not a solo endeavour for Devyani International, as it aligns forces with Temasek Holdings (Private) Ltd, a global investment giant headquartered in Singapore. With assets exceeding 380 billion Singapore dollars, Temasek Holdings brings substantial financial backing and expertise to this ambitious partnership.

The Thai QSR market has proven to be a flourishing ground for KFC, which is franchised by Yum Restaurants International (Thailand) Co Ltd, a subsidiary of Yum Brands, Inc. Since its establishment in 1984, KFC has risen to become the largest QSR/LSR chain in Thailand.

Thailand, with its robust poultry market and high levels of meat consumption, presents an enticing prospect for further market penetration. Devyani International not only aims to broaden its presence in Thailand but also envisions enhancing the consumer experience and actively engaging with local communities.

Devyani International remains committed to its core strategy of entering new geographies while concurrently strengthening its presence in existing locations, the company said.

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Shares of Devyani International Ltd ended at ₹183.45, down by ₹1.25, or 0.68%, on the BSE.

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Slowdown in fast food sales: Pizza Hut parent will now double its stores in 4 years instead of 3

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Sapphire Foods India, the company behind popular brands like Pizza Hut and KFC, is adjusting its expansion timeline, now aiming to double the pizza store count in four years, a slight shift from its previous three-year goal.

“We will slow down. We called out 3-4 years for doubling. Perhaps today on Pizza Hut, it will be four years and not three years,” said Sanjay Purohit, the Whole-Time Director and Group CEO of Sapphire Foods India, in an interview with CNBC-TV18.

Despite the competitive pressures in the Quick Service Restaurant (QSR) sector, particularly within the pizza segment, Purohit regards the current market dip as a short-term hurdle. He remains optimistic about a market upswing, predicting a resurgence in demand over the next 12-18 months.

However, JM Financial has listed the company among its top Diwali picks stating that the initiatives Sapphire Foods took for its two brands have started yielding tangible results.

Over the financial years 2019-2022, the company took various initiatives from optimising the menu to pricing and expanding its omnichannel presence to enhancing the value proposition and store economics. “The fruits of these measures are now visible with a decisive turnaround in Pizza Hut profitability and an even stronger KFC business,” the JM note stated, estimating a potential upside of 21% in the stock.

Kotak Institutional Equities also gave Sapphire a ‘buy’ rating in October saying the shares are ready to surge after a 2-year flat trend. The brokerage raised the target price from ₹1,615 to ₹1,700 per share keeping them on par with industry counterparts.

Shares of the company are currently trading at around ₹1,307 apiece. 

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The company has a market capitalisation of ₹8,228 crore.

For more details, watch the accompanying video

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Devyani International Share Price: Costa Coffee beverages will now be available at select PVR Inox properties

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Costa Coffee has expanded its availability of both hot and cold coffee offerings to select PVR Inox properties, parent company Devyanti International informed the stock exchanges on Wednesday, October 4.

The company’s stock has seen losses in five out of the last six trade sessions and nine out of the last 12 trade sessions. Despite this, it has shown a significant increase of 48.1 percent in the past six months and a 20.4 percent increase in value this year.

Devyani International specialises in the development, management, and operation of quick-service restaurants and food courts for renowned brands such as Pizza Hut, KFC, Costa Coffee, and Vaango.

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In the first quarter of this fiscal year, the company reported a consolidated loss of Rs 1.59 crore for the June quarter, a notable contrast to the Rs 74.8 crore profit in the same period last year.

The total revenue for the first quarter stood at Rs 846.6 crore, marking a 20 percent increase from the previous year’s Rs 704.7 crore.

Sequentially, the company recorded its earnings before interest, tax, depreciation, and amortization (EBITDA) at Rs 173 crore, and its EBITDA margin showed growth, increasing by 50 basis points to 20.5 percent.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

HNIs buy GMDC, IDFC First Bank QIP likely soon: Dealing Room Check

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of Gujarat Mineral Development Corporation (GMDC) gained the most in the month and ended the week with gains of nearly 20 percent.

Sources within the dealing rooms told CNBC-TV18 that HNIs are buying the stock recently and that the street is expecting a corporate development on the stock soon.

The stock has now gained in seven out of the last eight weeks and has nearly doubled during this period.

Second Straight Weekly Loss

The Nifty 50 ended the week with on a steady not, but not before cooling off from the day’s high. Despite Friday’s gains, the Nifty 50 posted its second straight weekly loss.

The Pharma and Healthcare index was the biggest gainer in today’s session, registering its biggest intraday gain in 16 months. The street is touting it to be a better defensive play than IT. Additionally, the HDFC Mutual Fund’s Pharma NFO saw a strong response.

Dealers also said that financial and metal stocks saw some short covering today. Broader markets also witnessed a relief rally.

Besides GMDC, here are the stocks that made it to the dealing room chatter:

IDFC First Bank: Shares of the private lender have now gained in five out of the last six trading sessions. Amidst the consolidation in the stock, dealing room sources said that a fund raising via a QIP is likely to be announced soon.

L&T Finance Holdings: The stock gained over 5 percent on Friday and ended higher for the third day in a row. Dealers said that FIIs have been buyers in the stock where a leading long only fund is an active buyer.

Devyani International & SAMHI Hotels: Both the stocks ended the day with gains of 1-3 percent as dealing rooms said that FIIs were buyers in both these stocks and they are likely to see a higher delivery volume in today’s trading session.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Ravi Jaipuria, promoter of Varun Beverages and Devyani International is now worth over $10 billion

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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A stellar rally in the stocks of companies named after his children has taken billionaire promoter Ravi Jaipuria’s net worth past $10 billion in 2023. The fortunes of India’s “cola king” have grown by over $2 billion so far this year, led by a rally in shares of Varun Beverages and Devyani International. The surge has taken Jaipuria to the 15th spot in the list of India’s richest individuals.

According to Bloomberg Billionaires Index, He is currently placed between DLF’s KP Singh and Nusli Wadia of Britannia Industries. While the owner of country’s largest listed real estate company has a networth of $10.9 billion as of Thursday, the fortune of Nusli Wadia stands at $8.5 billion.

The rally in shares of both Varun Beverages and Devyani International is backed by strong fundamentals. For instance, the net profit of Varun Beverages increased at a compounded rate of 48 percent between financial year 2018-2022 on the back of a 26 percent rise in net revenue. Similarly, Devyani International turned profitable in financial year 2022 after three straight years of losses through financial year 2021.

The top-line of the company surged by 25.5 percent over the last three years to Rs 2,998 crore in financial year 2023, with an EBITDA Margin of close to 22 percent, Bloomberg data showed.

Interestingly, shares of Varun Beverages have been consistent outperformers on the Nifty FMCG Index. The stock has never yielded a negative yearly return ever since its listing in 2016. The average return between 2017 and 2023 stands at 54.2 percent.

In addition to share price returns, Varun Beverages has also paid frequent dividends to its shareholders and also announced three 1:2 bonus issues in 2019, 2021 and 2022 respectively.

While the promoter entity RJ Corp holds 27.2 percent in Varun Beverages as of June 2023, Ravi Jaipuria owns roughly 18 percent of the company. Moreover, his son Varun Jaipuria has another 16.04 percent ownership in the company whereas daughter Devyani Jaipuria has 2.43 percent stake in Varun Beverages.

Incidentally, Devyani International made its stock market debut exactly two years ago on August 16, 2021. The stock, which had an issue price of Rs 90 per share, has more than doubled in two years since listing to make a recent 52-week high of Rs 215.

Promoter Jaipuria owns a 63 percent stake in Devyani International, the largest franchisee of Yum Brands in India, his holding in Global Health stood at six percent as of April, 2023.

Ravi Jaipuria, presides over RJ Corp. which is into varied sectors such as food & beverage, healthcare and education. He is also referred to as India’s “cola king,” who runs the second-largest international franchises of PepsiCo outside the US.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Devyani International Q4: Margins slide 320 bps, Net profits plummets 20%

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Devyani International declared its fourth quarter earnings on Wednesday, wherein revenues jump 28 percent to Rs 755 crore versus Rs 591 crore in the same quarter of last year. The earnings before interest, tax, depreciation and amortisation grew 11 percent to Rs 155 crore. The operating profit margin at 20.4 percent is lower than 23.6 percent in same quarter of last year, while net profits are lower by 20 percent to Rs 61 crore.

From the core brands, KFC generated revenues of Rs 444 crore, Rs 170 crore from Pizza Hut and Rs 33 crore from Costa Coffee. KFC, Pizza Hut and Costa Coffee revenues grew 26 percent, 16 percent and 16 percent year on year respectively.

The stock plummets 5 percent on the exchanges post its fourth quarter result declaration on May 17.

The company now operates 1,243 stores across brands and countries, doubling over past three years. KFC opens 29 new stores in fourth quarter and has a total of 490 stores at the year end of FY23. Pizza Hut has over 500 total stores after opening 23 new stores in fourth quarter. Costa Coffee has crossed total 100 stores as of March 31, 2023. The QSR chain’s highest count of stores are in North India with 37 percent share or 413 stores. This includes NCR with 202 stores.

The company has higher number of stores in non-metro cities with 53 percent share, while the rest 47 percent stores are in metro cities in India. The metro cities include Delhi NCR, Mumbai, Kolkata, Bangalore, Hyderabad, Ahmedabad,
Pune.

“We are seeing initial signs of inflation stabilizing. This gives us hope for a rebound in consumer spending in second half of the coming fiscal.” Chairman said in the company’s press release.

For the full financial year, revenues are higher by 44 percent to Rs 2,997 crore, while EBITDA rose to 655 crore and Profits stood at Rs 265 crore.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow