Pizza Hut India operator quarterly profit nearly quadruples on stronger sales
YUM•Devyani International reports higher quarterly profit and revenue
July 29 (Reuters) - Devyani International, the operator of KFC and Pizza Hut outlets in India, reported a nearly four-fold rise in first-quarter profit on Wednesday helped by stronger demand at its quick-service restaurant chains.
The company, a franchisee of U.S.-based Yum Brands, said consolidated net profit rose to 146.5 million rupees ($1.53 million) compared with 36.9 million rupees a year ago.
Revenue rose 16.5% to 15.81 billion rupees, while expenses rose 15.3%.
Large restaurant chains in India, including KFC and McDonald's, have introduced lower-priced menu items and discounts amid intensifying competition from newer rivals such as California Burrito, Wow Momo and Blue Tokai Coffee.
Standalone restaurants, meanwhile, are grappling with higher cooking-gas costs linked to the U.S.-Israeli war with Iran, while larger fast-food operators have been relatively insulated because they rely more heavily on electric kitchen equipment.
Shares of Devyani surged 6.6% to 121.4 rupees as of 12:27 p.m., highest in over a month after results.
($1 = 95.7100 Indian rupees)
