Jubilant FoodWorks shares down 6% as Q3 margins disappoint

Shares in Jubilant FoodWorks, operators of Domino's Pizza brand in India, slumped after the company reported lower than expected margins for the three months to December.

Earnings Before Interest Tax Depreciation and Amortization or EBITDA margins, a key measure of profitability, for the October to December quarter grew at 17.4 per cent against 19 per cent while same store sales grew at 16.1 per cent against estimates of 19 per cent.

Margin expansion was limited due to Dunkin' Donuts expansion, analysts said. Total expenditure in the quarter jumped 42 per cent year-on-year to Rs 332 crore against 234 crore. Other expenditure rose 43 per cent you to Rs 118 crore. Jubilant FoodWorks expense towards rent jumped 58 per cent yoy at Rs 31 crore,

Shares in Jubilant FoodWorks traded with nearly 6 per cent losses at Rs 1,130.25 on the Bombay Stock Exchange as of 1.40 p.m.

Jubilant FoodWorks' quarterly net profit grew lower than expected 28 per cent to Rs 37.7 crore in Q3 against Rs 29.47 crore in the year ago period. Sales in the fiscal third quarter grew 39 per cent to Rs 385 crore against Rs 277 crore year-on-year.

Brokers polled by NDTV expected Rs 40 crore in profit on sales of Rs 394 crore.