NEW DELHI: Cafe chain operator Coffee Day Enterprises on Wednesday said its net profit for the quarter ended June 2019 stood at Rs 1,509 crore, up from Rs 17 crore in the year-ago period. The performance figures came after months of delay due to the ongoing probe into the accounts of the company and its subsidiaries after the sudden demise of founder V G Siddhartha.
“..the probe into the company’s accounts is progressing and is likely to take a few more weeks for completion and hence there will a delay in submission of Q2 unaudited financial results as well,” Coffee Day said.
The profit figure for Q1FY20 looks optically higher because it includes an exceptional gain amounting to Rs 1,659 crore primarily on account of sale of equity stake held in Mindtree, the company said in a regulatory filing. Revenue from operations, however, was down 2 per cent to Rs 942 crore during the period under review.
Meanwhile, it’s subsidiary, Coffee Day Global Ltd, saw a net loss of Rs 61 crore. The EBIDTA stood at Rs 73 crore, down 10 per cent YoY. The company attributed the lower EBITDA to the closing of 280 cafes during the quarter, which had an impact of Rs 19.05 crore.
Then, drop in exports sales resulted in a loss of Rs 8.85 crore due to fluctuation in global prices, while promotional activities taken up to arrest fall in revenue due to general economic slowdown had an impact to the tune of Rs 7.71 crore.
The financial services seem to have taken a hard hit. During the first quarter of FY20, revenue from the financial services segment fell to Rs 67.18 crore from Rs 128.48 in Q1FY19.
KKR man quits CCD
KKR India chief executive Sanjay Nayar has quit the board of Coffee Day Enterprises. He had joined the board after KKR’s investment in the cafe chain in 2010. The private equity firm owns 6.07 per cent stake in Coffee Day.