Jubilant Foodworks and Havells India Share Q2 Results

5paisa Research Team 5paisa Research Team 8th August 2022 - 06:53 pm

Two major companies Jubilant Foodworks, the master franchisee of the Domino’s Pizza and Dunkin Donuts brands in India, as well as electrical goods player Havells announced their results on 20-Oct. Here is a quick take on the numbers.

Jubilant Foodworks – Q2 Results

Jubilant Foodworks saw sales grow by 36.73% on a yoy basis for the quarter ended Sep-21 at Rs.1,116 crore. Net profits for the quarter were up 58.2% at Rs.120 crore. The revenue growth was driven by smart growth across in-store and home delivery sales. The store operations and capacities were back to normal at most locations.

Rs in Crore	Sep-21	Sep-20	YoY	Jun-21	QOQ
Total Income (Rs cr)	₹ 1,116.19	₹ 816.33	36.73%	₹ 893.19	24.97%
Operating Profit (Rs cr)	₹ 194.94	₹ 111.05	75.54%	₹ 121.03	61.07%
Net Profit (Rs cr)	₹ 120.24	₹ 76.01	58.19%	₹ 69.52	72.96%
Diluted EPS (Rs)	₹ 9.11	₹ 5.76		₹ 5.27
OPM	17.46%	13.60%		13.55%
Net Margins	10.77%	9.31%		7.78%

For the quarter, operating profits grew by 76% to Rs.195 crore resulting in the operating margins expanding from 13.6% to 17.46% on a yoy basis. There was higher same store sales, better share of home delivery sales and better inventory tweaks. One thaw in the flesh was the spike in the cost of raw materials by 36% due to food inflation.

Net margins for the Sep-21 quarter stood at 10.77%, which is an improvement over the 9.31% in Sep-20 quarter and a leap over the NPM of 7.78% in Jun-21 quarter. The story is all about the QSR recovery post-pandemic.

Havells India – Q2 Results

Havells India sales revenues grew 31.65% for Sep-21 quarter to Rs.3,238 crore. However, the net profits were lower by -7.3% to Rs.302cr. There was growth across all the major verticals of the company including switchgears, cables, lightings, electrical consumer durables and the Lloyds consumer segment.

Rs in Crore	Sep-21	Sep-20	YOY	Jun-21	QOQ
Total Income (Rs cr)	₹ 3,238.04	₹ 2,459.49	31.65%	₹ 2,609.97	24.06%
Operating Profit (Rs cr)	₹ 382.61	₹ 362.84	5.45%	₹ 293.72	30.26%
Net Profit (Rs cr)	₹ 302.39	₹ 326.36	-7.34%	₹ 235.78	28.25%
Diluted EPS (Rs)	₹ 4.83	₹ 5.21		₹ 3.77
OPM	11.82%	14.75%		11.25%
Net Margins	9.34%	13.27%		9.03%

For example, the revenues of the switchgears business grew by 13% and the electrical cables business was up 18.3%. Lightings and fixtures grew 32% while electrical consumer goods business grew 26%. Even the Lloyds consumer business saw top line grow 23.5%. However, all these segments saw flat to tepid growth in EBIT profits while the Lloyds consumer business slipped into negative EBIT.

The big challenge that Havells faced in the quarter was the sharp spike in raw material costs. This has been a feature of most of the Indian companies across sectors and the supply chain constraints have only worsened over the last few months. This challenge got heightened by higher interest costs. Despite efforts by Havells to tweak its inventory more effectively to reduce the operating costs, the damage on the profit growth was done.

Net margins at 9.34% were lower than 13.27% in Sep-20 quarter but marginally better than 9.03% NPM in the sequential Jun-21 quarter.