Jubilant hit by sales, discounts worries

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Shares in Jubilant Foodworks declined 3.6 per cent, despite a surge in quarterly net profit on lower margins that analysts attributed to slowing same-store sales and discounts.

The operator of Domino's pizza in India said on Wednesday its April-June net profit surged 39.7 per cent to Rs 32.35 crore from a year ago.

However, Kotak Institutional says gross margins fell 110 basis points in the April-June quarter from a year earlier, attributing it to "aggressive discounting."

The brokerage reiterated its "sell" rating on the stock, citing expectations for "weak" consumer demand in urban areas and continued price discounting.


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