NEW DELHI: Homegrown coffee chain Cafe Coffee Day (CCD) has shuttered around 280 outlets in the first quarter of the current fiscal year (FY21), citing low profitability issues.For the April-June quarter, the company reported a consolidated net profit of Rs 1,672.41 crore helped by stake sale in Mindtree.
Revenue from operations, however, was down 4.06 per cent at Rs 926.80 crore as against Rs 966.04 crore in the corresponding quarter of the last fiscal, the company said in a statement.
With these closures, the total count of its outlets stood at 1,480 as on June 30, 2020. The coffee chain also reported a decline in average sales per day (ASPD) to 15,445 during the April-June quarter from 15,739 in the corresponding period of the last fiscal. But the count of vending machines went up to 59,115 units in Q1FY20 from 49,397 in the same quarter a year ago.
“Exports operations have been temporarily stopped due to lower margins and higher working capital requirement and around 280 outlets are closed during the quarter based on various factors including the profitability, future increase in major expenses,” the company said. CDEL has been paring its debt through the sale of non-core assets after the death of promoter V G Siddhartha. Earlier, in March this year, CDEL had announced that it would repay Rs 1,644 crore of its debt to 13 lenders after concluding a deal with Blackstone Group to sell its technology business park.
In September last year, it had announced the sale of its Global Village Tech Park in Bengaluru to global investment firm Blackstone and realty firm Salarpuria Sattva at an enterprising value of Rs 2,700 crore. It has also sold CDEL’s stake in IT firm Mindtree to L&T Infotech.