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08 February 2011

Deutsche Bank: Jubilant Foodworks Buy 58% sales growth, 64% EBITDA growth, 66% PAT growth

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Jubilant Foodworks Buy
58% sales growth, 64% EBITDA growth, 66% PAT growth


Jubilant Foodworks reported strong 3QFY11 results with 58% YoY topline
growth and 119% YoY growth in PBT. A 74.5% gross margin was credible
considering the apprehensions of high food inflation during the quarter.

EBITDA margins of 17.4% (+57bps YoY, -80 bps QoQ) reflecting relatively
higher staff costs (up 78% YoY) and higher other expenditure (up 45% YoY).
The company at its last conference call had mentioned a hike in salaries that
were done at the end of the last quarter and these would reflect fully during
the third quarter.

Details regarding same store sales growth, new store openings and new
frnachisees would have to wait as these details become available post the
company's detailed press release.

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