Jubilant FoodWorks Ltd that operates Dominos Pizza chain in India posted 28.43 per cent jump in its net profit to Rs 23.67 crore in the second quarter ended September 30, 2011.
The firm, which had a net profit of Rs 18.43 crore in the same quarter last fiscal, said it plans to hike prices by the end of this month to offset the rising commodity cost.
During the quarter under review, the firm’s net sales stood at Rs 240.31 crore, up 47.15 per cent from Rs 163.30 crore posted in the year-ago period.
Though it has registered a strong growth and expanded its presence by opening more stores during the quarter, the company said inflation and rising input cost are putting pressure on its business.
“We usually take price increases twice a year but this year has been different. There will be more. Rising input cost is putting pressure. We are planning to make another round of price hike this month,” Jubilant FoodWorks CEO Mr Ajay Kaul told reporters on a conference call.
The company had recently hiked prices of its products by 3 per cent. He, however, did not give how much the company plans to hike this time around.
Jubilant FoodWorks said it has earmarked an investment of over Rs 100 crore for opening more stores across the country. It plans to open around 80 Domino outlets this fiscal, of which 33 have already been opened. “Our total capital expenditure would be over Rs 100 crore.
This will mainly include opening more Domino stores and commissaries. Besides, this fiscal we are also gearing to open Dunkin Donuts store as well,” he said.
Mr Kaul said the company is gearing up to open first Dunkin Donut store in the first half of 2012. The firm plans to open around 80-00 outlets in the next five years.
“We are doing a lot of work to introduce Dunkin Donut in India. We are finalising how we are going to position it in the market. We are also preparing the network of vendors and also planning to set up commissaries for Dunkin, he said.”
Jubilant FoodWorks scrips ended the day on BSE at Rs 814.70 per share, down 1.81 per cent from the previous close.