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Coffee Day Enterprises turns profitable in Q3

Billionaire V G Siddhartha-led company reported a profit of Rs 1.1 crore as against a loss of Rs 20.94 crore in Q3 of FY15

Published: Feb 12, 2016 12:27:50 PM IST
Updated: Feb 12, 2016 02:19:43 PM IST
Coffee Day Enterprises turns profitable in Q3
Image: Mexy Xavier
V G Siddhartha, Chairman and Managing Director, CDEL

Coffee Day Enterprises Limited (CDEL), the listed diversified entity of Indian billionaire V G Siddhartha, has turned profitable in the quarter ended December 31, 2015. CDEL, which operates India’s largest cafe chain Cafe Coffee Day, got listed on the Indian bourses in November last year.

Siddhartha-led CDEL reported a profit of Rs 1.1 crore in the October to December quarter of the ongoing fiscal as compared to a loss of Rs 20.94 crore it reported in the same period, a year ago. The company had reported a loss of Rs 9.3 crore in the preceding July to September quarter of FY16.

“Despite the macro economic slowdown, our retail coffee business posted a strong growth in the quarter, with gross retail revenues up by 14 percent YoY and retail EBITDA up by 15 percent YoY,” said V G Siddhartha, Chairman and Managing Director, CDEL.

The company’s coffee business accounts for close to 53 percent of its overall revenue. Its coffee retail business, which includes its cafes, registered a same store sales growth of 4.9 percent in the December quarter, as compared with a 3.4 percent growth reported in the same quarter a year ago.

The number of cafes it operated at the end of December stood at 1,586 outlets. In the same quarter of the previous fiscal, CDEL had operated 1,472 cafes.

“We will continue to commit ourselves to ambitious targets with an aim to grow the retail coffee business at double-digits over the next couple of years,” said Siddhartha.

In the period under review, the company posted a revenue of Rs 679.68 crore as against Rs 592.10 crore reported in the same year-ago period, registering a growth of about 15 percent.

CDEL's non-coffee businesses include logistics, financial services, hospitality, real estate and an equity investment in listed mid-tier IT company Mindtree.

On Friday, in morning trade, the company’s shares were trading at Rs 224.70 apiece, down 0.22 percent over the previous day’s closing price. When it listed, CDEL’s issue price was Rs 328 a share.