Sapphire Foods Q2 Results Review - Battling Challenging Environment: Dolat Capital

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Dolat Capital Report.Sapphire Foods India Ltd. reported 36% revenue growth – in line with our estimate. The growth was driven by 36/60% jump in KFC/Pizza hut during the quarter. Though the Sri Lanka business reported 76% growth in Sri Lankan rupee terms, in Indian rupee terms growth was mere 2% - restricted overall performance. Also, though Sri Lanka business reported 23% Ebitda increase in LKR terms, due to currency fluctuation, Ebitda declined by 25% in Indian rupee terms. Sapphire Foods opened 42 new stores during Q2 (20 KFC, 14 Pizza Hut and eight in Sri Lanka), taking the total store count to 658. We believe that the company would continue to add 130-160 stores every year going ahead with a cluster based approach and penetration strategy. High inflation in key raw materials dampened gross margin by 320 basis points. However, better operational efficiencies helped Sapphire Foods improve its Ebitda margins by 470 bps. .Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Sapphire Foods Q2 Results Review - Battling Challenging Environment: Dolat Capital

High inflation in key raw materials dampened gross margin by 320 basis points.

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