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Westlife Development Q4 Review - Portfolio Strength To Drive Growth: Dolat Capital

Westlife Development Q4 Review - Portfolio Strength To Drive Growth: Dolat Capital

<div class="paragraphs"><p>McDonalds burger fries kept on a table. (Photo: Brett Jordan /Source: Unsplash)</p></div>
McDonalds burger fries kept on a table. (Photo: Brett Jordan /Source: Unsplash)

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

Despite Covid-19 led disruptions in early part of Q4, Westlife Development Ltd. delivered healthy revenue growth of 27.3% with 33.7% growth in restaurant operating margin which currently stands at Rs 1 billion.

Same stores sales growth stood at 22.7% in Q4 versus 10.5% in base quarter.

Westlife Development opened 12 new stores and 14 new McCafe’s during Q4. During FY22, 25 new stores have been added taking the total store count to 326 stores.

We believe that the company would achieve its target of adding 200 stores over the next three-four years taking the total store count to 500 plus.

High inflation in key raw materials dampened gross margin by 150 bps. However, better operational efficiencies helped Westlife Development improve its Ebitda margins by 80 bps.

Going ahead, we believe that the margins would improve gradually from current levels to 16% plus in FY24.

Click on the attachment to read the full report:

Dolat Capital Westlife Developement Q4FY22 Result Update.pdf

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