The company recorded a dip in its operating revenue, which inched down to Rs 1,069 crore from Rs 1,071 crore in October-December, 2019. However, on sequentially revenue from operations grew 31.2 per cent as Domino’s delivered a recovery of 100.3 per cent against last year.
The company said Dominos witnessed complete sales recovery during the quarter backed by continued strong growth momentum in Delivery and Takeaway channels which grew by 18.5 per cent and 64.3 per cent respectively. The management delighted to see a complete revenue recovery of the business along with strong improvement in margins. As the Covid impact abates further, the management believes that the company is in for a period of strong, sustained growth in the future.
The company returned to pre-Covid level sales in Q3 and saw 3 per cent Store sales growth (SSG) growth in January 2021. Recovery has been relatively faster and led by strong traction in delivery/takeaway channels, which grew 19 per cent and 64 per cent, respectively, said analysts at Emkay Global Financial Services.
Ebitda margins were slightly lower due to higher employee/marketing costs; gross margins moderated by 50bps QoQ (up 340bps YoY). Stronger SSG and post-Covid cost restructuring should continue to aid Ebitda margin expansion through FY22E, the brokerage firm said in result update.
At 12:47 pm, the stock was trading 7 per cent higher at Rs 2,834 on the BSE, as compared to 0.29 per cent rise in the S&P BSE Sensex. It hit a 52-week high of Rs 2,987, on January 11, 2021. The trading volumes on the counter more-than-doubled with a combined 2.9 million equity shares changing hands on the NSE and BSE.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.